See if you Qualify for Bankruptcy with a Chicago Bankruptcy Attorney

Oddly enough there are a few people that have an income that is too large quality to file a Chapter 7 bankruptcy and yet they don't make enough to file for a Chapter 13 bankruptcy. These people are stuck in a financial purgatory where they need to file for bankruptcy but simply can't.

Chapter 7 Bankruptcy Qualifications Explained by a Chicago Bankruptcy Attorney

To qualify for a Chapter 7 bankruptcy each state has established criteria related to the median income for the state. A court assigned bankruptcy trustee will review your income for the previous six months and compare it to the state average. Your income usually must be less for you to qualify for a Chapter 7 bankruptcy, but this alone doesn't preclude you from filing for a Chapter 13 bankruptcy.

Chapter 13 Bankruptcy Qualifications Explained by a Chicago Bankruptcy Attorney

A Chapter 13 bankruptcy is like a repayment plan so a certain amount of income is necessary to quality to file this form of bankruptcy. If your court appointed bankruptcy trustee decides that you don't have enough disposable monthly income to apply to a repayment plan then your petition to file a Chapter 13 bankruptcy plan will most likely be rejected. In this situation you don't make enough to qualify for a Chapter 13 bankruptcy.

As you can see from the above outlined situations, there may be a case where someone does not qualify for a Chapter 7 bankruptcy because they make too much and then they still don't make enough to qualify for a Chapter 13 bankruptcy. Often there are ways to work about this situation but it takes a bit of legal finesse and you'll need the help of a Chicago bankruptcy attorney to help you qualify for bankruptcy.