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

In order to determine if you are eligible for Chapter 7 bankruptcy in Washington, you must first understand the qualifications for filing. In general, you must pass a “means test,” which is an assessment of your current financial situation. You must prove that your income is less than the median income for a household of your size in the state of Washington. You must also have sufficient disposable income to pay off your creditors. Additionally, you must have filed all required tax returns for the past four years and must have received credit counseling within 180 days prior to filing for bankruptcy. If you qualify, then you must fill out an official petition form, which will include a detailed explanation of your financial situation, including all of your assets, liabilities, and income. You must also disclose all of your creditors, both secured and unsecured, along with the amount of each one. The court will review your petition and look at all of your information in order to determine if you are eligible for a Chapter 7 bankruptcy. If you are granted a Chapter 7 bankruptcy, then you will be allowed to discharge, or eliminate, most of your unsecured debt, such as credit card debts, medical bills, and other personal debts. After the bankruptcy is discharged, you will no longer be responsible for these debts, allowing you to begin rebuilding your credit. However, some types of debt, such as student loans, child support, and taxes, cannot be discharged under a Chapter 7 bankruptcy.

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

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