Who Is Eligible To File?

Bankruptcy Eligibility Information from Kentucky Attorney

We all make mistakes, and any one of us can get into debt that is insurmountable. Bankruptcy is for honest people who made mistakes or were simply unlucky.

Bankruptcy is not intended for people who can eventually, despite difficulty, get out of debt.

Congress changed the bankruptcy laws a few years ago, based on a belief by some, that many debtors were using bankruptcy to avoid paying legitimate debts that they actually could have paid.

Filing for bankruptcy is more complicated now than it was, but that doesn't mean that large numbers of people are now ineligible.

Which Type of Bankruptcy?

Most people prefer to file for Chapter 7 bankruptcy because it is over and done quickly, and more debt can simply be discharged. If you are not eligible under Chapter 7, you may still be eligible under Chapter 13.

The first step in determining if you are eligible to file personal (not business) bankruptcy is to take the "means test" required under the new law.

If your monthly household income is less than the median income for a household of your size in your state, you are eligible to file under Chapter 7. If your income is higher, then you must look at your expenses. High expenses for your mortgage payment, for example, would count in favor of your bankruptcy eligibility.

Chapter 13 Bankruptcy Eligibility

You may still be eligible to file under Chapter 13, depending on the amount of debt and whether you have previously declared bankruptcy. Chapter 13 involves a multi-year plan of payments toward your debt.

Bankruptcy was designed for people like you, if you fall into the above categories. Your being stuck in debt you cannot pay is in no one's interest. We will help you get out of debt and start over.

Put more than 20 years of bankruptcy experience to work for you. For bankruptcy assistance in free consultation with a lawyer, contact the law office of Marcus H. Herbert & Associates in Paducah, Kentucky.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.