There are two different types of personal bankruptcies which can be filed when you are trying to stop your home from being foreclosed on or your car from being repossessed. Chapter 7 bankruptcy lawyers in Fall River, MA can help you determine if you meet the qualifications to file for this type of bankruptcy. If not, you will have to file a Chapter 13 bankruptcy.
Chapter 7 Qualifications
To qualify to file a Chapter 7 bankruptcy, a means test will be explained and given to you by a bankruptcy lawyer. With a Chapter 7 bankruptcy, your unsecured debts can be written off, which includes credit card debt, medical bills, and car payments. Since bankruptcy law can be complicated, you should seek advice before filing from a lawyer at the Law Offices of Tara M. George, PC.
Determining Median Income
Chapter 7 bankruptcy lawyers can help determine your qualifications for this type of bankruptcy. To qualify, your family’s monthly income must be below the median for its size. Median income is determined by the state and yours can be calculated by averaging your monthly income over the last six calendar months.
Do this by adding up your income for the last six months, and then dividing it by six. So, if your income was $2,400 per month, it would be $2,400 x 6/6 = $2,400. Then multiply that number by twelve for the median income. So, 12 x $2,400 = $28,800. Since that is below the median income for one person, a Chapter 7 lawyer can file for bankruptcy for you.
If Over Median
If your income is over the median allowed for your family size, then you must do a means test. As Chapter 7 bankruptcy lawyers will explain, this involves calculating income and expense information. However, it could be easier to have them file a Chapter 13 bankruptcy instead.
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