What We Can Do

Personal bankruptcy allows an individual or married couple to get out from a burdened debt consumer experienced by a family, household, or personal purposes. Both Chapter 7 and Chapter 13 bankruptcy are personal bankruptcy chapters that effectively provide individuals with a new financial start. An individual may decide to voluntarily file for bankruptcy in court. However, this process of getting a bankruptcy approval is not a simple matter. Going bankrupt may sometimes look like an extreme but attractive way to wipe your financial slate clean. Nevertheless, it is not a decision to take lightly.

For you to apply for a personal bankruptcy, you must keep in mind the following.


In order to file for bankruptcy, you must be qualified. There is no fixed amount of debt that automatically qualifies an individual for personal bankruptcy, but there are a series of factors used to determine how much debt is enough to file. Basically, you will need to demonstrate an inability to repay your debts, and the biggest factor being your monthly income. Your income includes wages, salary, tips, and real property income. If your income is less than the monthly medium for the state which you live in, you will generally qualify for bankruptcy. If this is not the case, you will be required to demonstrate why your disposable income is not enough to pay your creditors.


After qualifying for bankruptcy, a federal bankruptcy court will need to approve your bankruptcy filing. The court can require a range of forms and documentation. The first thing you will need is a petition for bankruptcy. These documentations may differ depending on the type of bankruptcy involved, but you will generally need to provide personal information like your name and address. Details regarding debts you have, and whether you have filed any bankruptcy cases in the last eight years are also included.


When the court is finally approved by the court, your bankruptcy filing will discharge some of your debt. However, some debts, like back rent or credit cards, are eligible discharge in bankruptcy. Others like federal student loans, or child and spousal support. If debts involved a secured creditor, you may still be able to recover the property after bankruptcy.