How do I know if I am eligible for Chapter 7 Bankruptcy?

In order to qualify for Chapter 7 Bankruptcy in North Carolina, you must pass the “means test”. This means test is designed to determine whether your household income is low enough to qualify for a Chapter 7 filing. If your monthly income is lower than the median income of other households in North Carolina, then you most likely qualify. Additionally, you must be a resident of North Carolina and you must have had your primary residence in North Carolina for at least 91 days prior to filing for bankruptcy. When it comes to debt, you must have more than half of your debts be non-priority, unsecured debt in order to be eligible for Chapter 7 bankruptcy. This includes things like medical bills, credit card debt, and other consumer debt. You cannot have more than $1,500,000 in debt, and you must have had more than $7,500 in incurred debt over the last 90 days. It is important to note that even if you meet the criteria mentioned above, you may still not be eligible for Chapter 7 bankruptcy in North Carolina. This is because there are certain types of debts that are non-dischargeable, such as student loans, child support, and taxes. If more than half of your debt is of this nature, then you may not qualify for Chapter 7 bankruptcy. It can be difficult to know for sure if you are eligible for Chapter 7 bankruptcy in North Carolina. In order to be sure, it is best to speak to an experienced bankruptcy lawyer who can assess your particular situation and help you determine whether or not you are eligible.

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