Individual Chapter 7 bankruptcy is the most common form of bankruptcy for Indiana consumers. It can allow you to eliminate all of your unsecured debt such as credit card debt, medical bills, loans, etc. There are exemptions that will help you keep your assets. Using these exemptions properly will often keep the courts from taking any of your assets.
There are three main issues to consider when determining if you qualify for Chapter 7 bankruptcy.
- Prior Bankruptcies - Have you filed a chapter 7 bankruptcy in the last 8 years?
- Income - There is a "Means Test" to give a basis on if you would qualify for Chapter 7 bankruptcy using your household income (even if spouse is not fling bankruptcy their income is included).
- Household of 1 can have a gross income of $54,000
- Household of 2 can have a gross income of $69,000
- Household of 3 can have a gross income of $81,000
- House hold of 4 can have a gross income of $96,000
- Then it goes up by $9,900 for each additional person.
- If you are above these values then we will look at your household expenses as well. Many times, using expenses individuals and couples are still eligible for Chapter 7.
- Assets - The court will look at everything you own and see if anything can be sold to pay your creditors. Many times your items are covered under exemptions and if an asset is covered under an exemption then the court cannot take it.
Take advantage of our bankruptcy service and let us work with you to navigate the complexities of filing for bankruptcy!
