Am I Eligible for Bankruptcy?
In the era of the coronavirus, many Orlando individuals and families are struggling to pay their bills. Millions of Americans have lost their jobs due to business closures, including employees in the Orlando area. If you do not have an income, you likely are having difficulty making monthly payments to creditors, and you may even be having trouble making mortgage or rent payments on your home. As such, you may be wondering whether consumer bankruptcy is the best option for you. However, you might know that there are different types of personal bankruptcy, and that you must meet eligibility requirements in order to obtain bankruptcy protection.
So, are you eligible for bankruptcy? We will provide you with some key questions you should ask yourself as you consider whether to file for bankruptcy. And if you do decide to seek bankruptcy protection, one of our experienced Orlando bankruptcy attorneys can help.
Many consumers opt for Chapter 13 bankruptcy because it can allow a person to stop a foreclosure, to remain in the property, and to get back on track with mortgage payments. The other most common type of bankruptcy, Chapter 7 bankruptcy, does not come with this benefit.
To be eligible for Chapter 7 bankruptcy, you will need to pass a test called the “means test,” which is designed to determine whether it would be abusive to permit you to file for a liquidation bankruptcy and to have your debts discharged. If your household income is below Florida’s median household income, you can use that information to prove your eligibility and likely will not need to go through additional steps in the “means test.”
Do You Have Disposable Income?
If your household income is not below Florida’s median income, you will need to go through additional steps to determine eligibility for a chapter 7. In most cases, to pass the means test you will need to be able to show that you do not have sufficient disposable income to repay the debts you are seeking to have discharged.
Contact a Bankruptcy Attorney in Orlando
Do you have questions about your eligibility for bankruptcy? An Orlando bankruptcy lawyer can speak with you today. Contact Anderson & Ferrin to learn more.