Eligibility Requirements for Chapter 7 Bankruptcy
A successful Chapter 7 bankruptcy filing results in the discharge of your major debts, including medical and credit card bills. Filers have no liability for discharged debts but may have to turn over some personal property to a trustee to pay off creditors. To qualify for Chapter 7, you must meet certain eligibility requirements.
Here are the requirements for filing under Chapter 7 bankruptcy in California:
- You must be an individual or part of a partnership, corporation or other business entity.
- You cannot have had a bankruptcy case dismissed 180 days prior to filing.
- You must receive credit counseling from an approved agency within 180 days prior to filing.
- Your income is below the median income. In California, the median incomes effective November 1, 2012 are as follows:
- Household Size 1 – $47,433 Annually, $3952 Monthly
- Household Size 2 – $61,752 Annually, $5146 Monthly
- Household Size 3 – $66,034 Annually, $5503 Monthly
- Household Size 4 – $74,122 Annually, $6177 Monthly
- Your salary is above the median income but a means test determines you do not have enough disposable income to make Chapter 13 monthly payments.
If you believe you will qualify for an Orange County Chapter 7 bankruptcy and have more than $10,000 in non-payable debts, contact an attorney right away. If you do not meet the eligibility requirements, you may qualify for a Chapter 13 bankruptcy.
When you are ready to file, a team of bankruptcy attorneys in Irvine can help you submit all the appropriate paperwork. You must present a petition for Chapter 7 and submit a list of all creditors and their claims, your income and employment information, a list of your property and an account of your monthly living expenses.