Chapter 7 Eligibility
As Chapter 7 bankruptcy is often cited as the simplest, most straightforward type of bankruptcy available, it is also widely considered one of the easiest forms of bankruptcy to file under. However, even with this reputation, there are still eligibility standards that must be adhered to if a debtor intends on utilizing the benefits of Chapter 7 bankruptcy. Under recent laws, including the Bankruptcy Abuse Prevention and Consumer Protection Act, these standards for debtors have become more stringent, requiring more from those seeking bankruptcy’s protection.
If you are wondering if you can apply for Chapter 7 bankruptcy, an attorney could assist you with your questions today. Contact the Birmingham Chapter 7 bankruptcy lawyers at GREENWAY BANKRUPTCY LAW, LLC by calling (205) 324-4000 for advice concerning your bankruptcy case.
One of the immediate concerns in bankruptcy law is the balance between the rights of debtors and the rights of creditors. In this sense, the Bankruptcy Code attempts to establish fair eligibility guidelines to reasonably allow debtors to benefit from bankruptcy while allowing creditors a decent chance to receive some payment prior to debt discharging. Eligibility requirements include the following:
- Must be an individual, partnership, or corporation
- Must be able to pass the means test
- Must appear in court or comply with court demands
- Must have worked through credit counseling
Failure to follow through any of these requirements or failure to correctly file the necessary paperwork could end in immediate dismissal of a bankruptcy petition.
If you are considering bankruptcy as an option to deal with your amassing debts, working with a knowledgeable attorney can make the process significantly easier. With reliable advice and experience handling the bankruptcy system, a legal advisor could simplify the rigors of bankruptcy for you today. Contact the Birmingham Chapter 7 bankruptcy lawyers at GREENWAY BANKRUPTCY LAW, LLC at (205) 324-4000.