How do I know if I qualify to file a Chapter 7?
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How do I know if I qualify to file a Chapter 7?
I am recently married and currently we make roughly $75,000-$80,000, have $55,000 in credit card debt and another $35,000 in student loans (although I know that cannot be resolved). We have no assets but we both have vehicles that we owe about $10,000 and plan to continue to pay in full. We are not behind in any payments we are just struggling to make the minimum payments each month. Our monthly rent $825; car payments $600 total; insurance is $200; cable and internet $150; electric $150; cell phones $175; student loan payments $200; credit card minimum payments $1200.
Asked on November 10, 2014 under Bankruptcy Law, Florida
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
If you want to try and file for yourself or, at least, educate yourself before meeting with an attorney, here is a site that you will find to be of help: http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics.aspx
It will list eligibility requirements and the steps for filing, etc.
Greg Wiley / Law Office of Greg Wiley PLLC
Answered 10 years ago | Contributor
You must perform what is known as a "Means Test." If you do not pass the means test, a presumption of abuse occurs and it is unlikley you will be able to file Chapter 7 without some factor assisting you in overcoming that presumption of abuse.
This is something you will need to discuss with a qualified bankruptcy attorney.
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