Author Archive
Factors That Determine Eligibility for a Chapter 7 Bankruptcy
A debtor must qualify for two different assessments in order to file for a chapter 7 bankruptcy. The bankruptcy trustee first applies the median/means test, averaging the debtor’s income over the previous six months. Under the requirements of Schedule J of the bankruptcy petition, the trustee also will analyze the debtor’s current income and compare it to the current expenditures. If the trustee determines that the debtor qualifies under both of these analyses, then filing for a chapter 7 bankruptcy is allowed.
Debts You Must Pay Even After Filing Bankruptcy
While most unsecured debt is eliminated in a bankruptcy, there are still some payments that must continue to be made. These specific kinds of debt cannot be “discharged” in a bankruptcy and are listed explicitly in the Bankruptcy Code in Section 523 (a).
