Can You File For Bankruptcy?

Myths about bankruptcy

“Can I file for bankruptcy?” That is a question that many Americans must ask themselves at one time or another. The answer to the inquiry, “can I file for bankruptcy,” depends on a number of factors, as well as which chapter of bankruptcy you want to file for. There is a difference in chapter 7 and chapter 13 bankruptcy requirements.

In chapter 7 bankruptcy, a debtor is permitted to discharge almost all of his debt, with just a couple of exceptions. These exceptions include student loans and back taxes. However, when filing chapter 13 bankruptcy, the debtor must repay all or most of his debt in accordance with a mutually agreed upon 3 to 5 year repayment plan. The United States Bankruptcy Code requires that those filing under Chapter 13 are prohibited from retaining assets valued at an amount greater than $922,975 in secured debt and $307,675 in unsecured debt.

When asking the question, “can I file for bankruptcy,” it is necessary to take a hard look at your situation to determine which chapter is right for you. One requirement for Chapter 7 bankruptcy is to pass a means test. The purpose of this test is to ascertain whether your income is lower than the median income for your family size statewide. Should you fail this test, chapter 7 bankruptcy will not be an option. However, filing for chapter 13 bankruptcy most likely will be allowed. Gaining knowledge of both chapter 7 and chapter 13 bankruptcy laws by asking and learning about bankruptcy questions and answers will give you some clarity as you ask, “can I file for bankruptcy?”

Chapter 7 and chapter 13 bankruptcy statutes require that the bankruptcy filing continue to be listed on the credit report of the debtor for 7 to 10 years. This can make it almost impossible for filers to gain approval for a mortgage, a credit card, or a car loan from a lender without obtaining a credit worthy cosigner during that time period. However, it is possible to eventually rebuild your credit score after filing both chapters of bankruptcy.

For many people asking themselves “can I file for bankruptcy,” the benefits of doing so far outweigh the disadvantages. The greatest advantages of filing for personal bankruptcy is that you will no longer be struggling under a mountain of debt, nor will you constantly be harassed by creditors. A good local bankruptcy attorney can provide you with comprehensive answers to the question, “can i file for bankruptcy,” allowing you to fully understand how bankruptcy works. This is why it is so important to retain legal representation when asking, “can I file for bankruptcy?” More like this article.

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