Test To Identify Their Eligibility File Chapter 7 Bankruptcy

Before you get to file Chapter 7 bankruptcy, you have to question yourself a test to identify their eligibility file Chapter 7 bankruptcy. She was a key provision of BAPCPA law that President Bush signed into law in 2005, and it gauges your ability to repay all or part of their debts assessment of disposable income, which will once paid their expenses each month. This test also considers your annual income, which consists of a number of factors.

If you currently have a Social Security earnings and benefits, the U.S. Bankruptcy Court does not count as a viable means of income test and it will not affect your eligibility to file Chapter 7 bankruptcy. Other government benefits, such as payments and compensation for victims of terrorism does not count either. However, all other income, including wage earnings, pension distribution, income from rental property, inheritance, spouse and child support provision of a number of revenue for this test.

Do not worry if you are working on commission or do not have a steady income. Even if you get a large payment prior to bankruptcy, the bankruptcy court will not consider your income for one month only. Instead, it combines its half-year revenue at all, and distribute it on a monthly basis to determine your average monthly income. The court then you are to your monthly income for the full year to determine their annual income, and as long as you make less than the average annual income and other workers in their country of residence, you will be able to file for Chapter 7 bankruptcy.

Even if you make more than the average annual income in the State you live in, you can still get to file Chapter 7 bankruptcy, if the court can deduct your expenses from your income the value to determine whether you are entitled to Chapter 7 liquidation of debt . However, if you do not pass this test in their state, that does not mean you can not bankrupt at all. Instead, you will have the option to convert your case to Chapter 13 bankruptcy proceedings, which will eventually reduce you to share all of your debts, but will probably have to attend three to five years to repay at least part of the payment of your outstanding balances with your creditors.