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Eligibility requirements for bankruptcies

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by , 08-07-2011 at 06:29 PM (1445 Views)
The eligibility requirements for a chapter 7 filing are as follows:

1. The debtor is an individual, partnership, or a corporation or other business entity;

2. An individual debtor who is above the median income for his/her state must pass the means test;

3. An individual cannot file for bankruptcy if during the last 180 days, a prior bankruptcy petition was dismissed due to the debtor’s failure to appear before the court or comply with court orders, or the debtor voluntarily dismissed the case.

4. The debtor must have received credit counseling from an approved credit counseling agency within 180 days before filing. Any debt management plan developed during the counseling process needs to be disclosed to the court.

The eligibility requirements for chapter 13 are much more extensive than for chapter 7. In order to file chapter 13:

1. The debtor must reside or be domiciled in the United States;

2. The debtor must be an individual;

3. The debtor’s income must exceed their monthly expenses;

4. The debtor owes on the date of filing of the petition, noncontingent, liquidated, unsecured debts of less than $307,675 and non-contingent, liquidated, secured debts of less than $922,975. These figures are ceiling for secured and unsecured debt, but change based on inflation standards.
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Bankruptcy Law