Filing Bankruptcy With Little or No Money
Filing for bankruptcy with limited income is possible, but it often depends
on personal circumstances. In such situations, debtors may qualify to file
Chapter 7 instead of
Chapter 13 bankruptcy. In Chapter 13, you agree to a repayment schedule approved by the court
based on your ability to repay. If your debt obligations qualify for discharge
or complete elimination, Chapter 7 may be the best option to consider.
If you are unemployed, receiving unemployment compensation, or work limited
hours, you may be eligible to file for protection. You should review eligibility
requirements based on your situation. At the beginning of the filing process
you will take the
means test to determine if you qualify. This will review your income, debt, property,
expenses, and other details pertaining to your finances.
The test has a unique formula that provides information on how your bills
are paid based on your income and household size. There is a median income
amount each state sets in order for you to qualify. In other words, your
income would be at or under this amount to deem you as eligible for bankruptcy
Having little or no income may help the
bankruptcy process run easier for you, especially if you file for Chapter 7 protection. Chapter
13 may help you cram down or reduce what you owe on obligations such as
your vehicle or help you get caught up on missed mortgage payment, depending
on your ability to make scheduled payments. Discuss your situation with
a bankruptcy attorney in Fort Worth / Dallas.