How do I know if I'm eligible to file for bankruptcy?

In California, eligibility for bankruptcy depends on a few key factors. The first is to determine which type of bankruptcy you are eligible for. There are two types of consumer bankruptcy in California: Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. Chapter 7 Bankruptcy is the most common type of consumer bankruptcy. To qualify for Chapter 7 Bankruptcy, you must provide proof that your household income is lower than the median income level in your state. You must also pass a "means test" which requires you to provide a detailed financial history, including all of your income and expenses. Chapter 13 Bankruptcy is reserved for individuals with higher incomes who are looking to restructure their debts. To qualify for Chapter 13 Bankruptcy, you must demonstrate that you have a steady income, such as a job or a pension, that is sufficient to cover at least some of your debts. This type of bankruptcy also allows you to keep your property, unlike Chapter 7 Bankruptcy. In addition to the two types of bankruptcy in California, you must also consider if any of your particular debts make you ineligible for filing bankruptcy. These types of debts include student loan debt and taxes due. Finally, you must consider if you have filed for bankruptcy in the past. Generally, individuals who have filed for bankruptcy in the past must wait 8 years before filing for bankruptcy again. By considering the types of bankruptcy and your particular debts, you can determine if you are eligible to file for bankruptcy in California.

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