Bankruptcy Pre Discharge Course
Thanks to the internet, filing for bankruptcy is not only easier but faster as well. You have the chance to obtain all the information you need, complete your documents and pass them to the proper agency right in your own home through online bankruptcy filing.
Even with this accessibility and convenience, however, it’s important to note that not everyone can file for bankruptcy. You need to meet specific criteria set by the government in order to apply for a Chapter 7 or 13. That being said, the following are the different signs that make you eligible for filing for online bankruptcy.
1. Your Income is Lower than the Median
How much is the median income in your State? If your income is less than the median, then you are automatically eligible for bankruptcy filing. The need to continue with the test is no longer necessary.
2. Your Disposable Income
Even if your monthly income is higher than the median, that doesn’t automatically mean that you are capable of paying off the outstanding debts. The next step would be to find out if you have sufficient disposable income to meet some of the debts in your name. Usually, the disposable income is the difference between your monthly incomes less the allowable expenses. Anything leftover will be paid for your unsecured debts. States typically have a limit for disposable incomes and if yours go beyond the set limit, filing for bankruptcy is not possible.
Note that your eligibility to file for bankruptcy may vary depending on the type of bankruptcy you are aiming for. Chapter 7 and Chapter 13 regulations have varying definitions which means that you need to know which one applies to you.
What Makes you Ineligible for Bankruptcy?
Although you may meet the two requirements, note that there are also exceptions to the rule. If you find yourself in one or several of these situations, the chance of filing for bankruptcy is futile:
Previous Bankruptcy Discharge
If you’ve had a previous discharge for the last 8 years for a Chapter 7, you are restricted from getting a new one. As for Chapter 13, your record needs to be bankruptcy free for the last six years.
Defrauding the Creditors
Individuals who concealed certain assets to prevent them from being liquidated are defrauding creditors out of their rightful payment. If this is the case, the court will dismiss your bid for bankruptcy.
Dismissal of Previous Bankruptcy
If you applied for a bankruptcy which was challenged and dismissed within 180 days, the court has the right to reject the next application. Dismissal of a bankruptcy bid within 180 days is usually the result of fraudulence or violation of the court order.
So You are Eligible- What Now?
Once you’ve met all the necessary criteria, it’s now possible to start online bankruptcy filing. Start by deciding on what kind of bankruptcy you are aiming for. After which, you can follow these steps:
- Download the necessary documents and fill them in.
- Find out where you need to file the documents and how many copies are needed by the court.
- Create a list of your creditors and how much is owed.
- File your papers online. Note that online bankruptcy filing is done by an attorney since they have the necessary contacts for the job. Doing it yourself is not possible, even with the convenience of the internet.
- Wait for the summons of the court. In the meantime, be aware of all your debts and the necessary documents proving your incapacity to pay. A bankruptcy lawyer should be able to help you with the preparations for when you appear in court.
- A meeting called the “creditors meeting” will be held wherein you will have to justify your bid for bankruptcy.
- Wait for a challenge from creditors for several months. If none comes, you can successfully declare bankruptcy.