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When debt increases faster than you can pay it off, the stress can feel constant. Collection calls, late notices, and the fear of losing your home or wages can take over your life. Bankruptcy gives honest people a fresh start, yet you may be unsure whether you qualify. The good news is that more people are eligible than they expect. A bankruptcy lawyer at Fairmax Law could help you understand your options.
Your eligibility for bankruptcy in Allen Park depends on your income, debts, and the type of relief you are seeking. Chapter 7 and Chapter 13 each have their own requirements, and understanding which one you fit into is the first step. The sections below explain the basic rules to help you see whether filing may be an option for you and your family.
In Allen Park, most individuals qualify to file for bankruptcy, but federal law sets a few basic requirements. Under 11 United States Code § 109, you generally must live, work, or own property in the country, and you cannot file if you had a dismissal of a prior case within the past 180 days for certain reasons. To move forward with your filing, you also need to:
Our attorneys could guide you through these steps so that a minor oversight does not delay your case.
If you have many unsecured debts, such as credit cards and medical bills, Chapter 7 often lets you discharge them within a few months. To qualify, you must meet a requirement. This is the means test. Under 11 U.S.C. § 707(b), the means test compares your household income to the median income for a similar household in the state.
When your income sits below the median for your household size, Chapter 7 is typically available to you. If it is higher, the test looks more closely at your income and expenses. Many people who assume they earn too much may still qualify once a professional counts their actual expenses. In Allen Park, our bankruptcy legal team could run the means test correctly, explain what your results mean, and tell you if you qualify.
Chapter 13 works differently. Instead of discharging your debts quickly, it reorganizes them into a manageable repayment plan that typically lasts three to five years. For the applicable person, this option can:
To qualify for Chapter 13 bankruptcy in Allen Park, you must have a regular source of income, and your total debts must fall below the limits set by federal law. Under 11 U.S.C. § 109(e), these limits apply to secured debts, such as mortgages or car loans, and to unsecured debts, such as credit cards. Because the amounts adjust periodically, our attorneys could confirm whether your debts fall within the current limits.
Learning about your financial position does not have to be stressful, and you do not have to be in this alone. At Fairmax Law, we help people across the city find the right path out of debt, whether through Chapter 7 or Chapter 13. We offer bankruptcy with $0 down and flexible payment plans. Once you file, the automatic stay stops garnishments right away.
The easiest way to learn about eligibility for bankruptcy in Allen Park is to understand your own numbers. Fill out our free bankruptcy calculator today to find out which options may be available to you. Contact us today and take the first step toward a fresh start.
We have locations available by appointment in the following areas. Please call us to speak to an attorney and set up an initial meeting.
We are a debt relief agency helping people file bankruptcy under the United States Bankruptcy Code.
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