Anyone who is familiar with previous posts here probably knows quite a bit about the pros and cons of filing for Chapter 7 bankruptcy. By filing for Chapter 7 bankruptcy an Escondido resident can discharge debt, fend off collectors and hopefully point their financial trajectory in a more positive direction. But, the first step is to determine the answer to a not-so-simple question: do you even qualify for Chapter 7 bankruptcy?
The first and most important factor in determining whether you qualify for Chapter 7 bankruptcy is what is known as a means test. Basically, if an Escondido resident earns too much income, that person will not qualify for Chapter 7 and almost every form of income will be scrutinized.
Another factor that will be examined is whether the filer has attempted to go through the bankruptcy process in the previous six months, but failed to comply with all of the requirements. For instance, if a filer disobeyed a court order, or perhaps requested a dismissal of the action, that could disqualify a person from filing for bankruptcy.
Next, a person must comply with certain credit counseling requirements, namely that the filer needs to consult and cooperate with an approved credit counseling agency at least 180 days before that person files for bankruptcy. This part of the process is important because it may help limit the amount of people who need to go through the bankruptcy process in court if those people have other, less drastic options.
Source: FindLaw, "Who Can File for Chapter 7 Bankruptcy?," Accessed Aug. 16, 2015