Chapter 7 bankruptcy wipes out most, if not all of your debt,
leaving you with a clean slate. In order
to qualify for chapter 7 bankruptcy, you must pass a "means test." The test analyzes your income over the
previous six calendar months and projects an annual income. The means test is very tricky; talk to an experienced
bankruptcy attorney to find out if you qualify.
Chapter 13 bankruptcy allows you to pay back your debt over
time. In order to qualify for a Chapter 13 bankruptcy, you will need to meet
two general income requirements. First, you must have a regular source of income.
Second, you must have sufficient disposable income. Basically you must have at
some income left over to pay to creditors after you subtract your living
expenses from your monthly income. Chapter 13 bankruptcy often provides much
greater protection to debtors who own significant assets or have income that
would not be exempt in a Chapter 7. Most people filing for Chapter 13
bankruptcy are trying to protect a secured debt from being foreclosed or
repossessed, such as a home or a car.
King and King will evaluate your situation and determine if
Chapter 13 or Chapter 7 bankruptcy is right for you. Call our office today at 404-524-6400
for a free, confidential consultation to discuss your options or visit us at
www.kingandkingattorneys.com.
