The Truth About Chapter 7 Bankruptcy
Posted on October 29, 2009 at 5:47 am
hey destroydebt people-
what's this
"the truth about chapter 7 bankruptcy" talk? what truth? is there a hidden process or a back entrance to filing bankruptcy now? it's weird to hear that line for bankruptcy..i mean one can say "the truth about debt relief agencies" because they are privately run, but bankruptcy? it's like what's the government not telling us, right? sorry, too much coffee.
thank you in advance for your replies, if ever you find this interesting enough that is.
Posted on October 29, 2009 at 5:52 am
Hello Jenny,
You've come to the right place and yes we would find inquiries like this not just interesting--but also relevant.
"the truth about chapter 7 bankruptcy" ?
In 2005, there was an amendment to the bankruptcy laws, and one of those amend mended was the qualifications/eligibility for a Chapter 7 bankruptcy.
The consumer now has to pass an income test in his/her state called The Means Test to qualify for Chapter 7.
Posted on October 29, 2009 at 5:54 am
"the truth about chapter 7 bankruptcy" ?
To add to that, to qualify the debts must be unsecured: ex, credit cards, medical bills, collection accounts, payday loans, and deficiency balances from car repossessions, etc.
Posted on October 29, 2009 at 5:58 am
"the truth about chapter 7 bankruptcy" ?
Here this might help:
The Means Test - Determine your average income over the 6 months prior to the filing date and measure that against your state's median income.
If your income is above the median, there is a requirement for you to answer a series of questions that would help determine your eligibility for Chapter 7. If you your monthly disposable income goes over $182.50 (minus certain allowed deductions) you be forced to file Chapter 13 bankruptcy.
Posted on October 29, 2009 at 6:02 am
Really? Forced?
Well thank you guys, one more thing. You said unsecured debts only? What are not dischargeable under Chapter 7?
Posted on October 29, 2009 at 6:04 am
What are not dischargeable under Chapter 7?
Not just in Chapter 7 - but as well as Chapter 13:
Student loans (federal and private), taxes, fines, alimony, child support, mortgages & auto loans..did I leave out anything..
Posted on October 29, 2009 at 6:07 am
"the truth about chapter 7 bankruptcy" ?
Just to add to Wendie's:
If your monthly disposable income is NOT ABOVE but in between $100 and $182.50 you will have to answer a series of other questions to determine whether you will qualify for Chapter 7.