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Do I qualify for Chapter 7 Bankruptcy?
03 Oct 2014

To get a discharge, a client must actually qualify for a Chapter 7 Bankruptcy. Many clients or potential clients falsely assume they can simply file and obtain a Chapter 7 Bankruptcy when they wish. However, due to recent changes in the Bankruptcy Code in 2005, qualifying for a chapter 7 is more difficult.

Complexity of Determining Whether a Client Qualifies

During the appointment with the Client I will first review the assets, liabilities, income and expenses of the Client to determine whether the client qualifies for Chapter 7. Countless factors are reviewed when determining whether a Client qualifies. However, in very brief, I first look at the following:

I determine the Client’s average income and expenses for the prior year to date, 6 months, and future 6 months. I review the client’s sources of income and specific expenses. I filter out expenses that are not applicable and those that are. I then review the client’s household size, and other set standard allotted exemptions per code. Finally, I determine if the qualifying expenses outweigh the income on average by applying the data to two financial exams as required by the Bankruptcy Code.

Will bankruptcy help me?

Assuming qualifying expenses outweigh the income on average, I then move on to assess the Client’s liabilities and exemptions to determine if filing for Chapter 7 would benefit the Client or will harm the Client (i.e. losing a house, a car, significant saved cash).

Conclusion

Filing for bankruptcy is a complex process and requires proper planning to determine whether it is best for you. Errors will subject the Client to many irreversible financial perils. Thus, it is crucial that you select a highly skilled bankruptcy attorney. I make it my goal to provide each client the dedicated time and experience to assist the client with the bankruptcy. More so, I make it my goal to properly review and analyze the client’s income and expenses and determine whether a Client does indeed qualify for Chapter 7 bankruptcy relief.

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