Credit Help Services by Credit Clean
Do You Qualify For Bankruptcy?
If So, What Kind Of Bankruptcy Bankruptcy - Do You Qualify? What are the bankruptcy laws changing too? We have a lot of bankruptcy information here and a test for you to see how you would qualify for a bankruptcy. We have given a rough graph of who may qualify for a bankruptcy and which type. Don't use this as the only basis for filing a bankruptcy. It is best to speak with an attorney and get all the facts before making this decision. Credit Clean's job is to clean up your reports after you have filed bankruptcy. We specialize in bankruptcy clean up and hope you will come back to Credit Clean if you do file for bankruptcy. There are other things that have been changed and only speaking with a qualified attorney is recommended. If you get past these tests then at least you are half way there. DO I QUALIFY? Here are some basic bankruptcy guidelines after the new bankruptcy laws are in place. You first must take a financial counseling course that is approved. Is your current monthly income more than the media income in your state? If the answer is yes You must file a five year chapter 13 bankruptcy
If your answer is no You can file a chapter 7 bankruptcy
In both cases you must take an approved Credit Counseling Course to get a discharge from your bankruptcy.
Note: Qualifying for bankruptcy means test = current monthly income minus expenses times that by 60 = result
RESULT = More than 25% = $10,000 or more? Less than 25%=$6,000 or less MAJOR INTENT OF BANKRUPTCY REFORM:
The major intent of the bankruptcy reform is to require people, who can afford to make some payments towards their debt, to make these payments, while still affording them the right to have the rest of their debt erased. These people must file Chapter 13 rather than a chapter 7. STATUS OF THE BILLS:
The Senate passed the BILL on March 11, 2005 and the Congress on April 14, 2005. WHEN WILL THIS BANKRUPTCY REFORM BE LAW:
The bill was signed into law by the president on April 20, 2005. Section 308, 322 and 330, all concerning the homestead exemption, take effect immediately. This is law NOW. The exemption is limited to $125,000 if the property was acquired within the previous 1215 day (3.3 years). The cap is not applicable to any interest transferred from a debtor's previous principal residence (which was acquired prior to the beginning of such 1215-day period) The rest of the provisions of the law will come into effect 180 days after the BILL is signed or ...
October 17, 2005. The MAJOR CHANGES ARE: MEANS TEST:
This will identify debtors who have the financial capacity to pay some money to their creditors. The test will work as follows: Test 1:
Is the family earning above the average income for their state? Click Here for median wages by state and by number in family
If the answer is NO Chapter 7 can be filed! TEST 2:
If the answer is YES to TEST ONE, do you have excess monthly income of more than $166.66 per month, to pay $10,000 of debt over 5 years? If the answer is NO you must answer another question, if YES Chapter 7 cannot be filed! TEST 3:
If the answer is NO to TEST 2 do you have excess income of greater than $100 per month to pay over the next 60 months at least 25% of your unsecured debt? If the answer is NO you can file a chapter 7. If the answer is YES Chapter 7 cannot be filed but Chapter 13 may be filed! PROOF OF INCOME:
Debtors filing a chapter 7 or chapter 13 bankruptcy, must provide to the trustee, at least SEVEN DAYS prior to the 341 meeting, a copy of a tax return or transcript of a tax return, for the period for which the return was most recently due. STATE EXEMPTIONS:
You cannot use the exemptions in your state of residence unless you have lived there at least 2 years. HOMESTEADS:
This goes into effect as soon as the bill is signed by the president! As you read this the bill has already been signed as of April 20, 2005 so it is now in effect. The exemption is limited to $125K if the property was acquired within the previous 1215 day (3.3 years). The cap is not applicable to any interest transferred from a debtor's previous principal residence (which was acquired prior to the beginning of such 1215 day period) COUNSELING:
You must have finished counseling within the last SIX MONTHS before you can file. CHILD SUPPORT AND ALIMONY:
These debts would go from a priority debt of 7th place to a priority of 1st place. TITHING:
Up to 15% of your income can be given to charity. This is seen by some as a loophole allowing people who may be just over the thresh hold of having to filed Chapter 13 to drop down low enough to file a Chapter 7. Return To Previous Page Page Last Updated
Friday June 29, 2007 | 
