How do I know if I’m eligible for Chapter 7 Bankruptcy?

In order to determine if you are eligible for Chapter 7 Bankruptcy in Virginia, you will need to complete the means test. This test is designed to assess your financial situation to determine if you can pay your debts. To complete the means test, you will need to provide financial details such as your income and expenses. Your income will be compared to the median income for a household the same size as yours in your state. If your income is less than the median income, you will be able to file for Chapter 7 Bankruptcy. If your income is more than the median income, you will have to complete a second part of the means test. This part of the test will look at your disposable income, or the amount of money you have left after you pay essential expenses, such as rent and food. If you have no disposable income or your disposable income is too little to pay your creditors, you will likely be eligible for Chapter 7 Bankruptcy. If you have enough disposable income to make payments to your creditors, however, you may not be eligible for Chapter 7 Bankruptcy. There are certain situations in which you can still qualify for Chapter 7 Bankruptcy even if your income is above the median income. These include if more than half of your debt comes from consumer purchases or if you are obligated to pay alimony or child support. If you are unsure if you are eligible for Chapter 7 Bankruptcy, it is best to speak with an experienced bankruptcy attorney in your state. They can review your case and provide you with guidance about whether or not you qualify for this form of relief.

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How do I know if I’m eligible for Chapter 7 Bankruptcy?

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