Declaring Yourself Bankrupt

If you are in a position where you are unable to pay of your debts and are considering declaring yourself bankrupt, you might be wondering how to go about that.... and, most importantly, whether or not you are even eligible.

Before declaring yourself bankrupt, you will have to meet a set of criteria to be eligible. These include the fact that you must not have a previous bankruptcy discharge dated within the past 7 years. If you do have, then you won’t be declaring yourself bankrupt this time, as you are ineligible. Additionally, if you have had a bankruptcy petition dismissed in the past 180 days because you have not complied with all provisions of the Bankruptcy Code, then you will be ineligible. You’re also ineligible if you have, within the past 180 days, voluntarily dismissed you own bankruptcy case following a creditor of yours filing a motion to be exempt from the rules of no contact from automatic stay.

If you do not fall into any of those categories then you will be able to file for chapter 7 bankruptcy. However, chapter 13 bankruptcy had more criteria than that. Chapter 13 is what is often referred to as “Wage Earner’s bankruptcy and this focuses on organising a repayment plan over three to five years that will enable you to pay back what you owe in a manageable means, sometimes cutting that amount down too. In order to file chapter 13 bankruptcy, you must be earning a regular income and must not be either a stock broker or commodity broke. Additionally, your unsecured debt must not exceed $250000 and your secured debt must not exceed $750000.

These are very basic criteria that you have to make sure you understand before proceeding. If you fail to meet a single one of those criteria, you will not be able to file.