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

Eligibility for Chapter 7 or Chapter 13 bankruptcy in Maryland depends on several factors, including your income, debt, and assets. Generally, you must have a steady source of income and be able to prove that you cannot pay off your debts in a reasonable amount of time. The first step in determining whether you are eligible for bankruptcy is to take the Maryland Means Test. This test uses factors such as your gross income over the previous six months, family size, and the median income in your state to determine if you can afford to pay off your debts over the next five years. If you fall below the median income, you may be eligible for Chapter 7 bankruptcy. If you have more income than the median or have too many assets to qualify for Chapter 7, you may still be able to file for Chapter 13 bankruptcy. In Chapter 13 bankruptcy, you are able to set up a repayment plan with your creditors that will allow you to pay off your debts over the next three to five years. To qualify for Chapter 13 bankruptcy, you must show that you have a steady source of income and can afford to make payments over the length of the repayment plan. In short, it is important to understand whether you are eligible for Chapter 7 or Chapter 13 bankruptcy before making any decisions. If you are not sure whether you qualify, it is best to consult with a qualified bankruptcy attorney who can help you understand the requirements and guide you through the process.

Related FAQs

What will happen to my creditors if I file for bankruptcy?
Do I have to pay taxes on any discharged debt?
How can I protect co-signers from being affected by my bankruptcy?
Will filing for bankruptcy stop repossession?
Are there any debts that cannot be discharged in bankruptcy?
Can I keep certain types of tax debts when filing for bankruptcy?
What are some of the potential pitfalls to filing for bankruptcy?
Are there any limits to my spending during the bankruptcy process?
How do I obtain a copy of my credit report after filing for bankruptcy?
Can I get a loan after filing for bankruptcy?

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

Related FAQs

Related Blog Posts