Who Can File Chapter 7 Bankruptcy

There are mainly about four types of bankruptcy a person can choose from

. Two out of those four types of bankruptcy are chapter 13 and chapter 7, which are the two most popular types of bankruptcy. In order to file a chapter 13 type of bankruptcy, a person must have an income that exceeds his expenses. How about chapter 7? Who can file chapter 7 bankruptcy?

Before a person finds out that he or she is eligible or not to file a chapter 7 type of bankruptcy, he or she must first file a bankruptcy petition in the bankruptcy court. So knowing about chapter 7 is a great advantage even before you prepare your papers, you will have the chance to prepare yourself or even foresee the outcome when a bankruptcy trustee approves, denies or would send back your bankruptcy papers for amendments. Taking the necessary steps will save you time and money in the end.

Preparing your papers can be easy, hard or difficult depending on which method you do it. If you want to make things easy hire a bankruptcy lawyer. This can be expensive but the bankruptcy lawyer will do the things that you would not need to do. The bankruptcy lawyer will prepare your papers, guide you to the process, represents you in the creditors meeting and will give you legal advice. If you want to save some money by hiring a bankruptcy lawyer, you have to find someone who does free legal aids or offer a cheaper fee for their service. Now, do not mistake them as someone who is unqualified to help you. They are legally authorized by the law and are professionals in their field. Just keep in mind to always ask questions when you find something confusing or do not understand. You can always look for a bankruptcy lawyer that suits you so never pressure yourself to stick to one lawyer that you do not like.

Again, to the question, who can file chapter 7 bankruptcy? People who are eligible can file bankruptcy, so how do you become eligible? The main thing that you need to accomplish in order to become eligible is by passing the means test. The means test is a process that identifies and scrutinizes your financial capability. This test will reveal results that tell the bankruptcy court whether you can pay your debts or not. Before you plan to take a means test, first ask yourself how much income do you earn? Is it considered as above average? Do you have sufficient amount after all your expenses have been deducted from your income? Asking these questions prior to taking the means test will surely help you a lot in becoming familiar on what the result might be.

In preparing your papers, I suggest you try to find a petition preparer or a bankruptcy lawyer. They are qualified by law to do your paperwork, they do not cost so much and the end result is the same. This way, you will only need to pay their flat fee for that specific service. For more support on how to file bankruptcy, visit the link below.

by: Steve

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