How do I know if I am eligible for Chapter 7 or Chapter 13 bankruptcy?

In California, if you are interested in filing for bankruptcy with either Chapter 7 or Chapter 13, you must first see if you are eligible. The eligibility requirements for Chapter 7 and Chapter 13 vary, so it is important to know which one is right for you. To be eligible for Chapter 7 bankruptcy, you must pass a means test. This test evaluates your income, debts, expenses, and assets. Generally, if your income is lower than the median income in California, then you will qualify for Chapter 7. To be eligible for Chapter 13 bankruptcy, you must meet certain debt limits. To qualify, your unsecured debts (such as credit card and medical bills) must not exceed $419,275 and your secured debts (such as car loans and mortgages) must not exceed $1,257,850. In some cases, you may be eligible for both Chapter 7 and Chapter 13 bankruptcy. In this situation, it is important to understand the benefits and disadvantages of each so that you can make an informed decision. For example, Chapter 7 bankruptcy typically allows you to eliminate most or all of your debt, while Chapter 13 bankruptcy allows you to keep certain assets that you may have otherwise lost. It is important to remember that bankruptcy laws can vary from state to state, so it is wise to speak with a licensed bankruptcy attorney to determine your eligibility for Chapter 7 or Chapter 13 bankruptcy in California.

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How do I know if I am eligible for Chapter 7 or Chapter 13 bankruptcy?

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