Not everyone is eligible for a discharge under Chapter 7 bankruptcy. These types of cases are reserved to people that cannot afford to repay some or all of their debt. Trustees use a means test to calculate a debtor’s disposable income. If they have too much disposable income then they may not be eligible for […]
When people think of bankruptcy and foreclosure they usually think about Chapter 13 bankruptcy. Chapter 13 bankruptcy will stop a foreclosure sale and allow the homeowner to cure their mortgage arrears in a reorganization plan. Chapter 13 bankruptcy is an excellent choice when a debtor wants to continue living in their house and is at […]
Filing Chapter 7 bankruptcy doesn’t mean you have to give up your car and home if they are collateral for a loan. The debtor and the creditor can sign a reaffirmation agreement which will allow the debt to survive the bankruptcy discharge. If the debt is reaffirmed, after the bankruptcy the debtor continues to make […]
If you have researched filing Chapter 7 bankruptcy before, you are probably familiar with the dreaded Means Test. The Means Tests has dashed the hopes of many a would-be bankruptcy filer. This test was first included in the Bankruptcy Code in 2005 when the Code was revised. This revision made the requirements for Chapter 7 […]
Many Americans are struggling with their financial situation but not all of them are eligible for relief under Chapter 7 of the Bankruptcy Code. Chapter 7 limits eligibility to those people who are truly needy and cannot afford to pay their creditors, and it uses a form called the Means Test to determine if a […]