Chapter 7 and Chapter 13 Bankruptcy Eligibility
Before filing for bankruptcy, we advise considering the Chapter 7 and Chapter 13 bankruptcy eligibility requirements with the help of Benham Law, Inc., located in South Metro Denver. Reviewing the Chapter 7 bankruptcy eligibility requirements will help you discern whether you should proceed filing for Chapter 7 or consider your Chapter 13 bankruptcy eligibility. When filing for any chapter of bankruptcy, you will need to consider numerous factors. Holly M. Benham of Benham Law, Inc. and her expert team of bankruptcy lawyers can help you understand your filing eligibility and restrictions. Review the bankruptcy eligibility requirements we have outlined to take the first step toward your debt-free future.
Chapter 7 Bankruptcy Eligibility Requirements
To qualify for Chapter 7 bankruptcy in South Metro Denver, your income must fall below the median income in the State of Colorado, or you must pass a means test. The median income in the State of Colorado continually fluctuates. The Benham Law, Inc. legal team can help you determine whether your household income falls above or below the median. If your household income is higher than the State of Colorado’s current median, you will be required to complete a means test.
The means test will examine your debt in relation to your income. This allows us to determine whether you can feasibly pay back your debt to creditors. Because the means test involves a complicated analysis of your financial position, we recommend trusting your calculations to our professional bankruptcy attorneys here at Benham Law, Inc. If your primary debt does not fall within the consumer debt category, you are a disabled veteran, or the bulk of your debt accrued while you were in active duty, you are exempt from the means test. Determining Chapter 7 bankruptcy eligibility should always fall to the professionals.
Chapter 13 Bankruptcy Eligibility Requirements
Determining your Chapter 13 bankruptcy eligibility with our Benham Law, Inc. team involves confirming you meet a few qualification requirements. First, we will assess your filing status. You must file as an individual to qualify for Chapter 13 bankruptcy. Business entities must file under a different chapter.
Next, we will evaluate your total debt. In order to file Chapter 13 bankruptcy, you must meet debt limitations. These debt limitations change on a three-year cycle. As of April 2019, the current debt limitation states unsecured debt may not exceed $419,275. Secured debt cannot exceed $1,257,850. If you have questions regarding your debt totals, our bankruptcy lawyers would be happy to discuss your options.
Finally, to prove your Chapter 13 bankruptcy eligibility, you must prove you have adequate income to repay creditors, if only in part. Our legal team will happily explain what this repayment will likely consist of when you proceed filing through Benham Law, Inc.
Choose Benham Law, Inc. as Your Bankruptcy Attorney
South Metro Denver trusts Benham Law, Inc. with its Chapter 7 and Chapter 13 bankruptcy eligibility questions. Turn to our professional bankruptcy attorneys so you can ensure you have the best chance of being approved for bankruptcy. This process is stressful enough without having to determine your eligibility on your own. Let our experts help, so you can focus on building a debt-free future. Contact us today to schedule your free consultation with our trusted bankruptcy lawyers.