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

To determine if you are eligible for Chapter 7 or Chapter 13 bankruptcy in Washington, you will need to take a look at your financial situation. Chapter 7 bankruptcy is used to eliminate most forms of unsecured debt, such as credit cards and medical bills. Chapter 13 bankruptcy is used to reorganize and repay a portion of debt over a period of time, usually three to five years. To know if you are eligible for Chapter 7 bankruptcy in Washington, you will need to look at the amount of disposable income you have. This is determined by subtracting your expenses from your income each month. If the amount of money you have leftover after all expenses is above the median income for your household size, you may not be eligible for Chapter 7 bankruptcy. If you cannot qualify for Chapter 7 bankruptcy, you may still be eligible for Chapter 13 bankruptcy. To find out, you must fill out the means test. This is a document that will analyze your income and expenses to determine if you can afford to repay a portion of your debt over the three- to five-year period of a Chapter 13 repayment plan. It is also important to note that not all debt can be eliminated in bankruptcy. Student loans and back taxes are not typically eligible for discharge. If you would like to know more about which debts can be discharged in a bankruptcy, you should contact a local bankruptcy attorney. They will be able to provide you with more information about Chapter 7 and Chapter 13 bankruptcy in Washington.

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

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