Chapter 7 bankruptcy eliminates unsecured debt such as
medical bills, credit card debt, and payday loans. In order to understand whether you
qualify is by reviewing your eligibility factors. The most effective way
to learn if you qualify includes discussing your situation with an experienced
Meeting qualifications of the means test and providing proof of completion
of credit counseling are a couple of factors to review. There are a number
of requirements to meet in order to file and obtain a successful discharge
from debt. Yet, many people learn quickly they do qualify and meet such
Means Test – This reviews the situation of the debtor regarding assets, debt, household
size, and monthly income. The test also gives some insight on possible
State income requirements – Each state has income guidelines for
Chapter 7. Also known as the median income level for the state, if your income is
below this amount you may qualify to file.
Complete credit counseling and debtor education courses – Credit counseling is required prior to filing bankruptcy and debtor education
should be completed before debt gets discharged. These courses can be
completed online or by phone and there are agencies approved by the court
to provide each session.
If your income is considered too high you may qualify for a court-approved
repayment plan in
Chapter 13. When you file your petition proof of completion of credit counseling
may be required. If debtor education is not completed before your case
is closed, your debt may not be granted a discharge.