Search Site
Menu

Do You Have to Be Completely Broke to File for Bankruptcy?

The idea that you need to be flat broke to seek bankruptcy protection is a misconception. The amount of money you make and the amount of debt you have are not the sole factors that determine whether or not you should file for bankruptcy.

However, although there is not a minimum amount of debt required to file for Chapter 7 bankruptcy, there are certain other requirements. You are more likely to be able to file for bankruptcy if you are unable to pay your debts, or if you are facing lawsuits, wage garnishment, repossession or other threats from creditors.

Some of the requirements for filing for Chapter 7 bankruptcy are as follows:

  • Income. You must pass the “means test,” which compares the amount of money you make to the income of similar-sized families in Georgia. This test is in place to ensure that only those who cannot afford to make their debt payments are protected under Chapter 7.
  • Filing history. If you have filed for bankruptcy in the past, there’s a chance you won’t be eligible to do so again. In Georgia, you need to wait eight years after you first filed for Chapter 7 bankruptcy to be able to move forward with this process once again. If you file before that eight-year time limit has expired, your discharge will likely be denied and you will still be responsible for all your debts.
  • Accepted debt. Chapter 7 only allows for discharges of certain types of debt. Unsecured debts — such as payday loans and credit cards — can usually be discharged, but tax debts and student loans typically are not eligible.

To learn more about the requirements you must meet to file for Chapter 7 bankruptcy protection, contact the knowledgeable Georgia bankruptcy attorneys at Jeff Field & Associates online or at 404-381-1278 today.


Related Posts:


 

Leave a Reply

Your email address will not be published. Required fields are marked *

Videos
Our Attorneys
Client Reviews
  • lawyers
    5.0/5.0

    We worked with quite a few people in this office over the last 3 years. I can't tell you how many times I emailed or called or how many times they did the same and each time was a pleasure. These guys are so great to work with. They have a lot of com...

    Read more

    Client

  • google
    5.0/5.0

    Due to medical expenses and serious physical problems I had to file bankruptcy. I was nervous and really depressed about the whole situation. I called Jeff Field & Associates and felt at peace after talking to a lawyer. I decided to go with them and ...

    Read more

    Sherri Ellis

  • google
    5.0/5.0

    Outstanding work!! They were great from day 1!!! Thank you

    Read more

    L B

  • google
    5.0/5.0

    They Get the Job Done Trust me Right Away Fast Luv them

    Read more

    Gary Phifer

  • lawyers
    5.0/5.0

    Mr. Fields was very professional and understanding….he talked to me with respect and cared and understood my feelings….I would highly and strongly recommend him

    Read more

    Client

See all reviews
Contact us

Please fill out the form below and one of our attorneys will contact you.

Quick Contact Form