Judge Law Firm PLC
Tucson Bankruptcy Law Attorney
Call Us Today 520-815-0281

Are you eligible for Chapter 7?

If you’re considering bankruptcy, you’re looking for a fresh start. As opposed to repaying your debt through Chapter 13 bankruptcy, filing Chapter 7 bankruptcy allows you to liquidate some or all of your financial obligations. The court will take control of selling your assets to repay your creditors. This method provides a way out of debt for many people who have fallen on hard times.

Not everyone is eligible for Chapter 7 bankruptcy, however. Here are some of the main requirements to qualify:

  • Pass the means test. The means test takes account of all monthly gross income against your debts. If your monthly income falls below your state’s median income, then you qualify. Should your income land above the state median income, additional calculations are necessary.
  • Follow the instructions. The law disqualifies you from eligibility if a court rejected your petition for any chapter of bankruptcy in the last six months for failing to appear in court or comply with court orders.
  • Take a credit counseling class: Law requires you to undergo credit counseling from an approved agency within six months before filing for bankruptcy. If an extenuating circumstance prevents you from completing this step, you may file for an exemption.

End harassment from creditors

Forces beyond your control like loss of job and unexpected medical bills are common causes of bankruptcy. While some may wish to consolidate and repay their debts over time through Chapter 13, that’s not always possible if you’re unable to work or suffered a loss of income. Chapter 7 provides you with a fresh start if you do not have the means to repay your debts. You don’t have to live with financial worries.

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Judge Law Firm PLC
2123 E Grant Rd
Tucson, AZ 85719

Phone: 520-815-0281
Fax: 520-815-3000
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