Factors That Make You Ineligible To File Chapter 7 in Salt Lake City
If you are considering bankruptcy as an option to fix your financial situations, you need to ensure that you are eligible for Chapter 7 filing. You can consult a bankruptcy attorney, like Lewis Adams and Associates, to go over your financial situation to better assess your eligibility. The following are a few factors that will make you ineligible to file Chapter 7 in Salt Lake City.
Ability to Pay Back Debt
Usually, if your income is more than the median income of your state, you will be required to assess how much disposable income you have after necessities each month. If the amount of extra income is too high, you will be told that you are able to pay the debts you are trying to eliminate with Chapter 7 in Salt Lake City. You should consult an attorney to go over your income to save yourself the trouble of getting your filing thrown out of court due to sufficient income to pay the debt.
If you have filed a Chapter 7 bankruptcy in the past eight years, then you will be ruled ineligible to file another bankruptcy. If you are filing a Chapter 13 bankruptcy, you have to wait six years before filing another one. The date is from the filing date of the previous bankruptcy to the present date.
The law states that anyone filing for bankruptcy has to attend a credit counseling session a minimum of 180 days prior to filing for Chapter 7. The credit counseling allows you to look at all of your options before deciding to file for bankruptcy. The only exception to this law is if you have a mental or physical handicap that prohibits you from attending such classes. At the end of the counseling session, you will receive a certificate verifying that you have completed this requirement.
You should consult with your bankruptcy attorney to ask any questions you may have about this process. You can also schedule a consultation if you prefer to ask your questions face to face.