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

In order to know if you are eligible for Chapter 7 or Chapter 13 bankruptcy in Delaware, you must first understand the different types of bankruptcy and what they entail. Chapter 7 bankruptcy is known as liquidation bankruptcy, and it may allow you to discharge your debts without having to make payments. On the other hand, Chapter 13 bankruptcy is known as reorganization bankruptcy and may require you to make payments to creditors for a certain period of time. In order to be eligible for Chapter 7 bankruptcy in Delaware, you must pass a means test. This means that your income must be at or below the state median income for a household of your size. If your income is too high, you will not be able to file for Chapter 7 bankruptcy and will need to look into Chapter 13 bankruptcy. In order to be eligible for Chapter 13 bankruptcy in Delaware, you must have an income that is regular and reliable. You must also be able to prove that you have the ability to make payments to creditors over the three to five-year repayment plan. Chapter 13 bankruptcy does not require that you pass a means test, which may make it an attractive option for some people. So, to summarize, in order to determine if you are eligible for Chapter 7 or Chapter 13 bankruptcy in Delaware, you should first assess your income, regularity, and ability to make payments to creditors. If your income is at or below the state median income, you may be able to file for Chapter 7 bankruptcy. On the other hand, if your income is higher than the state median, you may need to look into Chapter 13 bankruptcy, which may require regular payments to creditors over a three to five-year period.

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

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