Despite the fact that you may be interested in filing Philadelphia Chapter 7 bankruptcy, it is important to note that this may not be something you qualify for. There are requirements that must be met in order for you to move forward.
This is the number one factor in determining your eligibility for Philadelphia Chapter 7 bankruptcy. Your income will be measured against the median income of a family of the same size in your state.
If your income is less than the median, you are in better position to move forward with Chapter 7 bankruptcy. If your income is higher, you may still be able to file this form of bankruptcy, but you will first have to pass the means test.
The means test is simple to understand: this determines if you have enough disposable income, after expenses and other debt obligations, to repay some or all of your unsecured debt through a repayment plan.
With enough disposable income, you will not qualify for Chapter 7 bankruptcy, however, you are in position to file Chapter 13 – a different form of bankruptcy which can help you with your debts
Previous Bankruptcy Discharge
Due to the fact that some people will attempt to abuse the system, the law provides that you cannot file Chapter 7 bankruptcy if you have obtained a discharge through Chapter 7 within the past eight years. The rules for Chapter 13 are different and you may be able to file a Chapter 13 Bankruptcy even if you had filed a previous Chapter 7 or Chapter 13 Bankruptcy.
Fraudulent Activity in the Past
If the bankruptcy court has any reason to believe you have cheated creditors or taken part in intentional fraudulent activity, the Court can deny you a discharge of the debts. Some of the things they watch for include:
- Giving your assets away to hide them from creditors
- Hiding your assets during a divorce proceeding
- Lying about your debt or about your income
- Using a credit card to purchase items which you are unable to afford, knowing that it could be discharged through bankruptcy
This is a basic overview discussing the finer details of who is unable to file Philadelphia Chapter 7 bankruptcy. Keep in mind that laws change from one state to the next, so you need to know what is expected of you in the area in which you live.
In the event you have done something improper, you may still be able to file a Chapter 13 Bankruptcy
The best thing you can do is consult with an experienced Philadelphia bankruptcy attorney. This person can review your situation, determine if you are eligible for Chapter 7 bankruptcy, advise you if a Chapter 13 bankruptcy would be a better idea and then help you decide which steps to take next.