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

To know if you are eligible to file for bankruptcy in Virginia, you must first determine which type of bankruptcy you qualify for. In Virginia, there are two types of bankruptcy: Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 bankruptcy is a liquidation bankruptcy, where non-exempt assets are sold to pay off creditors. Chapter 13 bankruptcy is a reorganization bankruptcy, where you propose a plan to pay back creditors over 3 to 5 years. To qualify for Chapter 7 bankruptcy, you must make less than the median household income in Virginia and pass a “means test.” This test will compare your income and expenses to median incomes and expenses in your area. If you make more than the median, you are not automatically disqualified, but you may be required to provide additional documents and information. To qualify for Chapter 13 bankruptcy, you must have a regular source of income that is enough to cover your debts and any necessary living expenses. You must also have debts that are less than the applicable maximums set by Virginia law. Additionally, you must have made an honest effort to repay your debts. If you want to apply for bankruptcy in Virginia, it is important to understand the eligibility requirements for both types of bankruptcy. An experienced bankruptcy attorney can help you determine which type of bankruptcy may be best for you and help you understand if you are eligible.

Related FAQs

How will filing for bankruptcy affect my spouse?
How long will a bankruptcy stay on my credit report?
What debts are dischargeable in bankruptcy?
What is bankruptcy?
Can I discharge student loan debt through bankruptcy?
How often can I receive a bankruptcy discharge?
How does filing for bankruptcy affect my retirement benefits?
What type of information will I need to provide to my attorney before filing for bankruptcy?
Will I lose my property if I file for bankruptcy?
What are some of the potential pitfalls to filing for bankruptcy?

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

Related FAQs

Related Blog Posts