facebook-squarelinkedin-squaremenumobiletwitter-squareyoutube-square

Bankruptcy Requirements

Bankruptcy Requirements

Bankruptcy RequirementsBankruptcy Requirements

Some of history’s most successful business owners including a past president have gone through bankruptcy. Henry Ford, Walt Disney, even Abraham Lincoln all went through bankruptcy. Bankruptcy can actually be good for society, allowing people to make mistakes and recover from them and move on. Without bankruptcy, we wouldn’t have the Ford Motor Company (Ford’s second try) or Abraham Lincoln wouldn’t have gone into politics ( he first had a failed general store). Let’s demystify bankruptcy today by laying down the facts:

In order to qualify for Chapter 7 Bankruptcy, there are seven basic requirements:

  • – Client’s annual income must be below the median
  • – $52,384.00 for an individual with no dependents
  • -$65,802.00 for couple with no dependants ( for each dependant add about $9,000 to $10,000)
  • – Filed prior bankruptcy in the last 8 years?
  • -Equity in the home?
  • -Amount of unsecured debt (credit cards, medical bills, auto deficiencies, and mortgage deficiencies)

Once a client qualifies for bankruptcy they usually ask if they’re going to lose anything/everything and the answer is usually no. Most clients don’t lose anything they own. However, everybody’s situation is different and it depends on your own individual circumstances. Following are a list of exemptions:

-Homestead   $125,000   (up to) State

-Federal:

-Wildcard       $12,725 Ind   $25,450 JT

-Household   $12,250 Ind   $24,500 JT

-Jewelry         $1,550   Ind   $31,00   JT

-Tools Trade   $2,300 Ind   $4,600 JT

-Auto               $3,675 Ind     $7,350 JT

at Garage Sale VALUES!

If you’re being garnished, sued or if you’re just drowning in debt, or maybe you just want a fresh start for the new year or you’re facing retirement….whatever your reason it’s time to start looking out for yourself and clearing out debt so that you can begin saving. Call Advantage Legal today and get your free consultation.

SEE ALSO:

Bankruptcy 101

What is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • Taxes and Student Loans in Bankruptcy

    Taxes and Student Loans in Bankruptcy

    Taxes and Student Loans in Bankruptcy There are certain kinds of debt that can be discharged in bankruptcy. A Chapter 7 bankruptcy is a great way to reduce or eliminate many debts.  A Chapter 7 bankruptcy can help discharge credit card debts, medical debts and many other types of unsecured debt.  A Chapter 7 bankruptcy […]Read More »
  • What Do You Lose If You Declare Bankruptcy?

    What Do You Lose If You Declare Bankruptcy?

    If you are reading this, you probably know what it means to claim bankruptcy and is looking to find consequences. On the flip side, there is you who sauntered onto this article unbeknownst of what ‘bankruptcy’ means. I will keep you both in mind through this. Shall we? Bankruptcy is the legal process that involves […]Read More »
  • How Much Do You Have to Be in Debt to File Chapter 7 Bankruptcy?

    How Much Do You Have to Be in Debt to File Chapter 7 Bankruptcy?

    How much do you have to be in debt to file Chapter 7 Bankruptcy? Are you neck-deep in debt? Are you considering filing up for bankruptcy? When you think of filing up for bankruptcy, do selling off your assets come to mind? If your answer to these questions is a yes, then you need to […]Read More »
  • Can Mortgage Forbearance Hurt Your Credit?

    Can Mortgage Forbearance Hurt Your Credit?

    Can Mortgage Forbearance Hurt Your Credit? and why As we all know, the world is currently experiencing a financial downturn due to the ongoing pandemic, which has directly affected millions of jobs. As such, a lot of homeowners are bothered concerning their mortgage payments. There have been some incentives by mortgage providers to soften the […]Read More »