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If you believe that bankruptcy is the right debt relief solution for you, the first step is to determine what type of bankruptcy best suits your financial circumstances. Many debtors hope to qualify for Chapter 7 bankruptcy, which results in discharge — elimination — of most or all of your consumer debt, including credit card balances, medical bills and installments loans.
A Chapter 7 debt discharge gives a debtor a true opportunity for a fresh start. Naturally, many people looking for information about bankruptcy soon realize the benefits of a Chapter 7 bankruptcy if they are eligible.
How do you know if you are eligible for a Chapter 7 bankruptcy? Federal laws enacted in October, 2005, require bankruptcy filers to take a means test to determine whether they qualify for bankruptcy at all, and if so, which type of bankruptcy they qualify for. We at Prescott & Pearson, P.A., welcome the opportunity to help you complete the means test with as little confusion as possible.
You most likely qualify to file Chapter 7 bankruptcy in Minnesota if:
- Your current monthly income is less than the median income for a household of your size in Minnesota (as of 2011, approximately $45,000 for a household of one, $61,000 for a household of two or $74,000 for a household of three, for example). If you are over the median income you may still qualify to file a Chapter 7 if you pass the means test (basically a standardized IRS budget).
- Your monthly expenses (including allowable housing, transportation, medical and living expenses) do not leave you with enough disposable income to repay your debts.
- You have not had another bankruptcy dismissed in the past 180 days because you failed to respond to the court or voluntarily halted it.
- You have received credit counseling from an approved agency within 180 days of filing.
Serving Minnesotans for 40 Years · St. Paul, Minneapolis · Filing Bankruptcy? Attorneys at Prescott & Pearson, P.A., Can Advise and Assist You
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- Minneapolis-St. Paul Area: 651-968-8096
- Minnesota Toll-Free: 888-366-0827
Individual circumstances vary greatly. You should review your financial picture with a lawyer in person to determine what type of bankruptcy is right for you. To learn more about Chapter 7 eligibility in Minnesota, call or contact our bankruptcy lawyers today. We offer free initial consultations, quality services at competitive rates and effective representation statewide.