Bankruptcy Requirements
Some of history’s most successful business owners including a past president have gone through bankruptcy. Henry Ford, Walt Disney, even Abraham Lincoln all went through bankruptcy. Bankruptcy can actually be good for society, allowing people to make mistakes and recover from them and move on. Without bankruptcy, we wouldn’t have the Ford Motor Company (Ford’s second try) or Abraham Lincoln wouldn’t have gone into politics ( he first had a failed general store). Let’s demystify bankruptcy today by laying down the facts:
In order to qualify for Chapter 7 Bankruptcy, there are seven basic requirements:
– Client’s annual income must be below median
– $52,384.00 for an individual with no dependants
-$65,802.00 for couple with no dependants ( for each dependant add about $9,000 to $10,000)
– Filed prior bankruptcy in last 8 years?
-Equity in home?
-Amount of unsecured debt (credit cards, medical bills, auto deficiencies, and mortgage deficiencies)
Once a client qualifies for bankruptcy they usually ask if they’re going to lose anything/everything and the answer is usually no. Most clients don’t lose anything they own. However, everybody’s situation is different and it depends on your own individual circumstances. Following are a list of exemptions:
-Homestead $125,000 (up to) State
-Federal:
-Wildcard $12,725 Ind $25,450 JT
-Household $12,250 Ind $24,500 JT
-Jewelry $1,550 Ind $31,00 JT
-Tools Trade $2,300 Ind $4,600 JT
-Auto $3,675 Ind $7,350 JT
at Garage Sale VALUES!
SEE ALSO:
– What is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?
