First of all, your eligibility depends on which type of bankruptcy you are filing for. The two most common types of bankruptcy in the U.S. are Chapter 7 bankruptcy and Chapter 13 bankruptcy. These two types of bankruptcy are considerably different and so it is important to determine which best fits your situation. You can discuss your situation with a member of our team at the Maida Law Firm if you want us to help you find the best solution for your specific needs and goals.
Chapter 7 bankruptcy could allow you to get rid of most, if not all, of your unpaid debts. It is also known as liquidation bankruptcy because your assets may be sold in order to repay your creditors. In order to be eligible for this types of bankruptcy, you will need to pass the means test. The goal of the means test is to make sure that the individual filing for bankruptcy truly cannot repay the debt on their own and needs assistance. It takes into account the monthly income of the individual, their disposable income, and the amount they owe.
Chapter 13 bankruptcy is also known as reorganization. Basically, your debts are reorganized and a five-year payment plan is set up. If you are not able to file for Chapter 7 bankruptcy, this could be a good option for you. There are, however, certain requirements for Chapter 13 bankruptcy as well. For example, if your debt is too high so that you could not repay the debt in five years, you may not be granted this type of bankruptcy. Please, get in touch with a Houston bankruptcy lawyer from our firm so that we look into your case in detail. Call today to schedule a consultation!