We have locations available by appointment in the following areas. Please call us to speak to an attorney and set up an initial meeting.
Filing for bankruptcy can be life-changing, but it is not a decision you should take lightly. Before you ever make plans to pursue this process, it is a good idea to first make certain you qualify. There are strict eligibility requirements to be aware of, and they differ depending on the type of bankruptcy you plan to file.
If you have questions about eligibility for bankruptcy in Warren, now is a good time to ask. Our dedicated bankruptcy attorneys can review your situation and help you understand what your options might be.
Bankruptcy is designed to give individuals in Warren a fresh financial start, but there are strict eligibility requirements that apply. Our attorneys can help you explore your options, which differ depending on whether you are seeking protection under Chapter 7 or Chapter 13 of the bankruptcy code.
Chapter 7 is often referred to as “liquidation” bankruptcy. It’s meant for people who are struggling with unsecured debts, such as credit cards, medical bills, and personal loans. To qualify, you must pass something known as the means test, which compares your income to the median income for a household of the same size in your home state.
The reality is that you might not qualify for Chapter 7 if your income is too high. This is because the process is intended for those without any real assets, and there are other options available if you have a limited ability to pay down some of your debts.
If you’re eligible, Chapter 7 is often worth pursuing since it can erase most debts within a few months. What’s more, you can typically secure your discharge without giving up any of your property.
Chapter 13 is ideal for individuals with steady income who are behind on debts such as mortgages, car loans, or taxes. Instead of wiping debts away immediately, Chapter 13 sets up a 3- to 5-year repayment plan. You must show that you have enough income to meet monthly living expenses and make payments under the plan. There are also limits on how much debt you can have, which are adjusted periodically. Like Chapter 7, you’ll need to complete credit counseling before filing. Chapter 13 can be a powerful tool to stop foreclosure, keep your assets, and catch up on overdue balances while protecting your financial future.
There are some additional factors to consider when it comes to qualifying for bankruptcy in Warren. For starters, you have to wait a minimum amount of time to file for bankruptcy again after receiving a prior discharge. The amount of time depends on whether you file under Chapter 7 or Chapter 13.
You could also have a bankruptcy case dismissed if there is evidence of fraud. Fraud can take different forms, from attempting to conceal assets from the court to repeatedly filing in an effort to abuse the automatic stay.
Some of these issues are entirely avoidable. For example, you could see your case dismissed if you fail to complete the mandatory credit counseling course before you file.
If you are unsure about your eligibility for bankruptcy in Warren, now is the time to talk things over with an attorney. Our firm is here to help you understand your options and guide you along the way. A fresh financial start could be available, but you will need to meet certain eligibility requirements first.
Let us help you understand your options moving forward. Call for a private consultation today. Or fill out our online debt calculator for more immediate information.
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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