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

If you are considering bankruptcy in Utah, you need to understand the differences between Chapter 7 and Chapter 13 bankruptcy. Eligibility for either type of bankruptcy depends on two main factors: 1) Your income and 2) Your assets. To be eligible for Chapter 7 bankruptcy, you must pass a “means test” to prove that your income is below a certain threshold, and that you do not have enough disposable income to pay off your debts. If you do not pass the means test, you may still be eligible for Chapter 13 bankruptcy. In Chapter 13 bankruptcy, there is no means test. However, you will be required to have enough disposable income to pay off your creditors over a 3-5 year repayment plan. Your assets will also be taken into consideration when deciding whether or not you are eligible for Chapter 13 bankruptcy. It is best to speak with an experienced bankruptcy attorney who can help you understand your options and determine which type of bankruptcy is right for you. An attorney can review your finances and assets, suggest a plan of action, and help you make sure that the bankruptcy process goes as smoothly as possible.

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

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