Filing for Bankruptcy – When, How, & Why
Determining if you Qualify for Bankruptcy
Individuals file personal bankruptcy because there is financial relief needed and they seek a second start. If you feel there is no way out of your debt troubles and these debt troubles are regular occurrences, filing bankruptcy maybe your best option.
- Debt troubles a regular occurrence
- You fear losing your home/facing home foreclosure
- Wage garnishment has been assigned to paychecks
- Laid off/ job problems
- Medical crisis to your family
- Creditor harassment
- Recent divorce
- Lawsuit pending
To Qualify for Bankruptcy there are steps you must take.
1) Attend a court-approved financial counseling course
2) Figure out if your monthly income is more or less than the median income in your state.
One way to Qualifying for the bankruptcy means test:
Current monthly income minus expenses
Times that by 60 to get your result
If your result is more than 25% = $10,000
Less than 25%=$6,000 or less
1400* 60 = 84000*.25 = 21000 (File for chapter 13)
400*60=24000*.25 = 6000 (File for chapter 7)
3a) If Income is more than median income then you can file a 5 year chapter 13 bankruptcy
3b) If Income is less than median income then you can file a chapter 7 bankruptcy
4) Get a discharge from your bankruptcy through an approved Credit Counseling Course.
A Chapter 7 bankruptcy or a Chapter 13 Bankruptcy can help you overcome problems. Learn more about what filing a Bankruptcy can do to help you in Bankruptcy 101
If you are at risk of losing your home due to foreclosure, mortgage mediation and modification might be your best solution. Contact us anytime to learn more information about Western Washington mortgage mediation, the fairness act, and how to avoid foreclosure.