Do I Qualify to File for Bankruptcy?

Making the decision to file for bankruptcy is difficult - it can be emotional, stressful and can place you in a high stakes situation. This is aggravated by the fact that many people are simply unsure of where to turn in regards to bankruptcy. It is confusing and until you are forced to deal with, it is unlikely that you know the specifics regarding the bankruptcy process. This can leave you struggling with questions and having no answers, such as questions that deal with the topic of qualification. After all, filing for bankruptcy is not a free for all - there are requirements that must be met. So when one is looking to file for bankruptcy, how does one know if they qualify to file at all?

Long Island Bankruptcy Lawyer - Asking the Right Questions

It is important to realize that the question you should be asking should not be if you qualify, but rather whether you should file and if you should, which chapter it should be for. At the end of the day, if you are struggling with debt, you are going to qualify for bankruptcy. This does not necessarily mean that you should file though. Just because you have debt does not mean that bankruptcy is the solution for you - and it is important that you take the time to determine whether or not it is.

At Scupp & Berman, LLP, we will take the necessary time to discuss all bankruptcy alternatives with you to see if one of these others options will be better suited to deal with your debt. If we believe that looking into debt consolidation will be a more ideal option, we won't force you into filing for bankruptcy. Instead, we will take the time to help you consider this alternative and how it will help you case. If in the end we do decide that you should file for bankruptcy, you can trust that we will help you to understand the different qualifications that each of the chapters have.

While you will almost certainly qualify to file for bankruptcy, you may not qualify for every chapter. The qualifications for bankruptcy will differ depending on which chapter you are looking to file. It is also important to realize that in 2005, bankruptcy law was updated, which made the bankruptcy filing process more difficult. While this makes the requirements more stringent, it did not have the huge impact it was once feared to have. For the most part, those who would have qualified for Chapter 7 before 2005, will still qualify - and if they don't, they will almost certainly qualify for Chapter 13.

Qualifying for Chapter 7 and Chapter 13 Bankruptcy

If you determine that you should be filing for bankruptcy, it will next be important to determine which chapter best suits you and which one you qualify for. Chapter 7 bankruptcy, also known as straight liquidation, is typically the hardest chapter to qualify for as it will essentially wipe away debts once it has been filed. In an effort to ensure that only those who truly need this chapter file for it, all potential filers must complete what is known as the means test.

The means test will compare the individual or family's income with the median income of a family of that size within the state. If below the median, they will have "passed" the test and will move forward in the filing process. If they don't, they will have to calculate the disposable income and determine whether or not they have the means to effectively pay off the creditor.

If you are deemed not eligible for file for chapter, it will then be recommended that you look into Chapter 13. Qualifying for this is substantially easier - all that you will need to prove to the court is that you have the disposable income to pay off your debts with a payment plan that will allow you to pay your debts over a three to give year period. You must also show that your secured debts do not exceed $1,081,400 and that your unsecured debts don't exceed $360,475. Finally, you must have filed all of your state and federal taxes on time for the previous four years.

Contact a Long Island bankruptcy lawyer today!

When you are dealing with debt, it is important that you remember that you don't have to handle this alone. By getting the legal assistance of a knowledgeable Long Island bankruptcy attorney, you will be able to handle your debt and come up with the best solution for you. At Scupp & Berman, we are proud to help clients with their bankruptcy-related issues throughout Nassau and Suffolk Counties. We know that this is a difficult decision to make and we are prepared to help our clients make the decision that is best suited for them. So what are you waiting for? The longer that you wait, the longer that you will be forced to deal with the adverse side effects of debt. Get us involved today and experience the difference that we will be able to make. You can trust that we will go the distance in our efforts to help you put your life back on track once more.

Want to know more about qualifying to file for bankruptcy? Contact the Law Offices of Scupp & Berman, LLP as soon as possible to discuss your case and your best options.