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

If you are considering filing for bankruptcy in Rhode Island, it is important to understand which type of bankruptcy you are eligible to file. Generally, individuals can file for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 is generally used by individuals who cannot afford to pay their debts. It is also known as a “liquidation” bankruptcy because it discharges many unsecured debts, like credit card bills and medical bills. To qualify for Chapter 7, you must pass the means test. This test calculates your income against the median income in your area and compares it to your level of debt. Chapter 13 is used by individuals who have a regular income and need a repayment plan to pay off their debts. It is structured differently than Chapter 7 in that you must create a repayment plan and prove that you can stick to it. This type of bankruptcy also requires a repayment period of three to five years. In order to determine if you are eligible to file for bankruptcy, you must speak to a licensed bankruptcy attorney in Rhode Island. They can advise you on which type of bankruptcy is best for you based on your current financial situation. Additionally, they can help you gather the documents and paperwork necessary to file the paperwork correctly.

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

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