How do I know if I will qualify for Chapter 7 Bankruptcy?

In Virginia, individuals must meet certain requirements to qualify for Chapter 7 Bankruptcy. To be eligible for Chapter 7 Bankruptcy, you must first be a resident of Virginia and have resided in the state for at least the past 180 days. You must also submit proof of your income to the court to show that you cannot pay your debts off in a reasonable amount of time. In addition, the Means Test must be passed to be eligible for Chapter 7 Bankruptcy. The Means Test considers your income and expenses, compares it to the median income of Virginia, and determines if filing bankruptcy would be in your financial interest. If your income is lower than the median income, you automatically pass the test. If your income is higher than the median, the court will consider your expenses to determine if filing bankruptcy would be beneficial. If the Means Test is passed, the court will also need to determine if any of your debts are non-dischargeable, which means it cannot be wiped away in bankruptcy. There are certain types of debts that cannot be discharged including taxes, court-ordered alimony and child support, student loans, and other types of debts. By considering all of the requirements for Chapter 7 Bankruptcy, you can determine if you will qualify for bankruptcy protection in Virginia. If you qualify and decide to proceed, an experienced bankruptcy attorney should help you navigate through the process.

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