Simple Check To Test Your Eligibility For Filling Chapter 7 Bankruptcy
By Cornie Herring
Most people who file for choose Chapter 7 instead of Chapter 13 because it's fast, effective, easy to file, and doesn't require payments over time. Chapter 7 usually takes the least time to complete. The process is over in about 4 to 6 months, commonly requiring only one trip to the courthouse by the person filing for to emerge debt-free.

However not every persons who are seeking of getting debt free by filling will be eligible to file under chapter 7. If you remaining income after subtracting what you will spend on certain allowed expenses and monthly payments for child support, tax debts, secured debts such as a mortgage or car loan, and a few other types of debts is sufficient to support the payment under chapter 13 repayment plan, then, you will not allow to file under chapter 7.

Check Your Eligibility Criteria

The first step to check your eligibility of filling chapter 7 is to measure your average income for past six months against the median income for a family of your size in your state.

Once you have calculated your income, compare it to the median income for your state (You can find the median income by state information from www .usdoj.gov/ust; click the Mean Testing Information). If your calculated average income is less than or equal to the median income of your state, you can file under chapter 7 bankruptcy, else you need to go through another eligibility test, called "Mean Test".

The "Mean Test" based on the outcome from calculated disposable income. To get your disposable income, calculate your average monthly income as describe in above paragraph. From that amount, you subtract both of the following:

• Certain allowed expenses such as clothing, transportation, food and so on; in amounts set by the IRS (Note that this amount may be lower than your actual spending).


• Monthly payments you will have to make on secured and priority debts. Secured debts such as mortgage and/or car loan; priority debts include child support, alimony, tax debts, and wages owed to employees.

Credit Card Charge-Off Collapse - the Next Economic Crisis
Consolidated Credit Counseling Services, Inc. predicts credit card debt as the next financial breakdown. Consumers state their unsecured debt is approximately triple over last year. The bailout plan has been passed to help with the mortgage crisis, but consumers have credit card debts that they can't pay. (PRWEB Oct 12, 2008)

of your debts, as Chapter 13 does. But first thing is your must be eligible and meet the requirement for chapter 7 to opt for this option.

Cornie Herring is the Author from "StudyKiosk-Credit Basics"- www.studykiosk.com/creditbasics. "StudyKiosk-Credit Basics" is an informational website on credit basics, debt consolidation and bankruptcy.