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Bankruptcy, Is it for you?

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Many people struggle with their finances. Often due to illness, loss of job, divorce or unexpected loss, people find themselves unable to make ends meet.  Can bankruptcy help you?  The short answer is; It depends.

First, the debtor must be eligible for Bankruptcy. An individual or married couple can file Chapter 7 Bankruptcy under the following conditions:

1. The debtor has not filed a bankruptcy and received a discharge within the last 8 years,

2. The debor passes the means test.  Income eligibility based upon the average household income for the county of residence.  This also takes into consideration the household size.  If you don’t pass the test you must file Chapter 13.

3. Six months residence in the State where the case is filed.

An individual or married couple can file a Chapter 13 Bankruptcy if the debtor has not filed a Bankruptcy and received a discharge within four years,

 

There are additional debt and property restrictions for Chapter 13, but most consumer creditors can meet these.

Second the debtor must know if the debts are dischargeable.  Most consu