There are so many common myths surrounding bankruptcy that it is easy to understand why people wonder if they qualify for bankruptcy. So if you want to ask something like do i qualify for bankruptcy? You can learn more from this article. Why do people wonder if they qualify for bankruptcy? One of these is that only persons who are in dire financial straits can apply for bankruptcy protection. Another myth is that it is only the extremely poor who can file for bankruptcy liquidation. The bankruptcy qualification process is more complicated, and it involves an extensive accounting of exactly how much you earn, what you own, and how much you owe. This is not something for people with good credit to do.
The most common bankruptcy qualification question that many people ask is, “Do I qualify for a car payment reduction?” Of course, the answer depends on what your income and assets are. If you own a home, you probably will qualify for a reduced car payment. This is true for many lenders, which you should inquire about when you are applying for bankruptcy.
There is another question that most people ask about their bankruptcy qualifications. This is “Do I have to pay for a free consultation with a representative from the lender to ask questions about filing a bankruptcy?” This is an honest question to ask when you are considering a debt relief program. While you certainly do not have to pay for a free consultation, it is not uncommon for some lenders to offer a free consultation when trying to get you to take a particular route. You should not be required to go through this process, but it can be worth your while to ask about this. If a lender insists on having you go through this free consultation, you may want to consider looking for another lender.
Another factor that goes into a bankruptcy qualification is the debtors’ income. If the median income for the area in which you live is much lower than the debtor’s income, then you probably will not qualify. This is because the creditors looking at your debt are not going to want to take on someone who does not have a lot of disposable income.
The identifiable income
This brings us to another factor that goes into a bankruptcy qualification. Debtors must have the identifiable income to file. Other factors go into this, but payment is an essential factor for creditors determining debtors’ bankruptcy qualification. If an unsecured debt is more than the median income for the state in which you live, then you probably will not qualify.
One more factor used by the creditors to determine if a debtor is likely to file chapter thirteen is whether the debtor files chapter thirteen within three years after becoming eligible for relief. If the debtor files chapter thirteen after this period, the application will be denied. This is because many people become discouraged when it becomes clear that they cannot qualify for debt relief. Many people become willing to file bankruptcy again after they receive the certificate. This means that the application will go back to the table, and it will be rejected once again.
These factors are all used by the creditors to determine whether or not an individual debtor may qualify for Chapter seven bankruptcy qualification. If you find out before you apply for chapter seven bankruptcy relief that you do not meet one or more of these requirements, you should probably reconsider your plan of action. You may want to use a different method of debt relief. If you find out that you do qualify, you should take steps immediately to secure the necessary approval to begin rebuilding your financial future.