index page

Bankruptcy

Date: Sat, 09/11/2010 - 13:42
Submitted by on Sat, 09/11/2010 - 13:42
Posts: 202330
Credits:
[Donate]

We live in Georgia. We have been to 2 different attorneys for consultations. They say we only qualify for chapter 13. My sister lives in Alabama and she qualified for Chap 7. She makes more money than we do. And we have more debt we owe about $100,000. How is that possible? Both attorneys are telling us we will have to jump through hoops to get it done and hers was a piece of cake. Should we try another attorney or just suck it up?
Thanks for any help!


Basically, the Means test determines whether or not you will be eligible for Chapter 13 or Chapter 7 bankruptcy. If your income is less than the state median, then you can qualify for Chapter 7 Bankruptcy. However, if your income is more than the state median, then you'll be required to file Chapter 13 bankruptcy.

For more information, refer to
http://thismatter.com/money/credit/bankruptcy/chapter-7/means-test.htm


Submitted by Good Nelly on Tue, 10/12/2010 - 04:56

Good Nelly

( Posts: 2846 | Credits: )


Quote:

Originally Posted by good.nelly
If your income is less than the state median, then you can qualify for Chapter 7 Bankruptcy. However, if your income is more than the state median, then you'll be required to file Chapter 13 bankruptcy.



While the 1st part of this post is partially correct (no "presumption of abuse" arises), the 2nd is not correct at all. If you are above median income then you have to complete means testing. If you have positive cash flow after completing means testing, in an amount that exceeds Congress's standards, then a "presumption of abuse" is established. If you cannot rebut the "presumption" then you cannot remain in a Chapter 7. At that point you have 3 choices:

a. Convert to a Chapter 13
b. Convert to a Chapter 11
c. Let the Chapter 7 case be dismissed and either wait to qualify, file either a 13 or 11 or, do not file a bk.

Des.


Submitted by despritfreya on Tue, 10/12/2010 - 07:37

despritfreya

( Posts: 175 | Credits: )


The previous answers are on the right track. It is a situation in which your personal information would have to be evaluated because no two people are in the very same situation, in the same location with the same income, loans, etc. I would advise you speak to someone who can take a look at your individual case.

S. Zalewski of affordablebankruptcyrelief.com


Submitted by on Thu, 10/14/2010 - 12:01

( Posts: 202330 | Credits: )