chapter 7 bankruptcy

Declaring bankruptcy is not a resolution approached casually. Disadvantages exist for filing as do benefits. Not only is a person's credit future put in jeopardy, but likewise it affects his or her self-image and reputation. Although chapter 7 bankruptcy is a fresh start, many people do not know all of what it entails. Eligibility "Means" Passing the Test For a person or business entity to qualify for Chapter 7 bankruptcy, income must pass a "means test." The assessment determines whether earnings are under the state-specific median level for liquidation by examining financial records, including any money awarded, expenses, and loans. High-earners who do not qualify must file Chapter 13 bankruptcy for debt relief by making, structured payments to creditors. Income types included: wages, commissions, salary, tips, overtime, and bonuses state disability insurance benefits gross income from a farm, profession, or business annuity payments, royalties, divid