Chapter 7 bankruptcy rules govern who can apply for this type of bankruptcy and when they can apply. For example, one of the Chapter 7 bankruptcy rules that a party must be a person to file Chapter 7. Other rules include those that stipulate that a person submitting this type of bankruptcy must demonstrate that he Don’t have enough money to pay their debts.
In addition, he cannot have a discharged bankruptcy, which is less than eight years old. Similarly, a person who had a bankruptcy case declined in the previous 180 days for reasons such as court order violations or fraud are not eligible for a Chapter 7 bankruptcy petition.
Cheap chapter 7 bankruptcy lawyers
One of the most important chapter 7 rules regulates who can apply for this type of bankruptcy, read more at https://bankruptcy-basics.org/. Individuals are usually eligible for this type of bankruptcy discharge, but partnerships and corporations are not. This does not mean that they cannot file for bankruptcy, but because there are other types of bankruptcy available to partnerships and businesses.
The sum of money that the individual debt is usually not a factor in whether he is eligible for bankruptcy, but some types of debt cannot be eligible for discharge. For example, many types of student loans are not eligible for Chapter 7 discharge. Chapter 7 bankruptcy rules usually exclude child support as a dischargeable debt as well.
How to be eligible for this type of bankruptcy
There are also chapter 7 bankruptcy rules that allow a person to repay his debt. To be eligible for this type of bankruptcy, a person’s income cannot exceed the median income in his state. In case a person’s income is too high, he may still have the right to file this type of bankruptcy if he does not have enough disposable income to create a reasonable five-year repayment plan for a substantial portion of his debt.
Some chapter 7 bankruptcy rules imply the earlier filing of bankruptcy proceedings. Usually, a person is not eligible for this type of bankruptcy if fewer than eight years have passed since he got a chapter 7 bankruptcy or fewer than six years has gone after a chapter 13 bankruptcy.
Likewise, if a person had a bankruptcy case rejected in the last 180 days because he violated a court order, he is not entitled to this type of discharge. The same applies if a person committed fraud or abuse of bankruptcy law.