Just about anyone can file for bankruptcy if they think that it’s the best way to address their debts. There may be more stringent requirements for certain types of bankruptcy though, and someone who has filed before might face additional obstacles. This is why it’s important to talk to a Montgomery County Chapter 13 bankruptcy lawyer who can tell you more about these processes and what you’ll ultimately need to do before you can file.
Are There Specific Requirements to File For Bankruptcy?
While just about everyone is eligible to file for bankruptcy, each chapter has its own requirements for filing. If you filing as an individual, then the usual options are Chapter 7 and Chapter 13 bankruptcy.
To file for Chapter 7, your income must fall below a certain threshold. This type of bankruptcy liquidates your assets and allows you to pay off debts with the money. You can exempt some assets from bankruptcy and keep them though.
Someone who wants to file for Chapter 13 bankruptcy has to have a stable income above a certain amount. Then they can make a “wage earner’s plan” that allows them to pay off their creditors over a period of three to five years.
Individuals can also file for Chapter 11 bankruptcy, which is meant to reorganize debts while a business continues operating. If you run a small business of your own, this might be the right option for you, but just keep in mind that this is generally more expensive and time-consuming than Chapter 13 bankruptcy.
Can I File For Bankruptcy If I Have Filed Before?
Another thing that could affect your eligibility to file is whether or not this is your first time using the bankruptcy process. If you have filed for Chapter 7 or Chapter 13 before, there are waiting periods that can prevent you from using different types of bankruptcy back to back. Depending on what type of bankruptcy you filed and what type of bankruptcy you want to use this time around, you could be forced to wait as many as eight years before you can file again.
Should I Hire a Lawyer?
Because of the various rules about the different types of bankruptcy and the amount of work involved in properly filing, we do recommend working with an attorney. It can be tough to manage this on your own. Whether you are in Chapter 7 and want to protect as many assets as you can through exemptions or you are in Chapter 13 and you need help fighting for a fair debt repayment plan, a lawyer can assist you.
Schedule Your Consultation
When you are ready to learn more about bankruptcy and its requirements, contact Mudrick & Zucker. We can schedule a case consultation and tell you more about what you should expect from this process. Reach out to our team today.
