What do I need to know before applying for bankruptcy?
Check if there are other ways you can deal with your debts before you apply for bankruptcy. Your application will be looked at by someone who works for the Insolvency Service called an ‘adjudicator’. They’ll decide if you should be made bankrupt. The process is different if someone else is applying to make you bankrupt.
Do you have to be a business to file for bankruptcy?
Individuals, couples, and businesses can qualify to file for bankruptcy relief. Businesses usually always qualify to file a Chapter 7 bankruptcy petition if the business is shutting down. But, consumers (filing by themselves or with their spouse) must meet several requirements if they want to discharge debts in a Chapter 7 bankruptcy.
When does a business qualify for Chapter 7 bankruptcy?
Businesses usually always qualify to file a Chapter 7 bankruptcy petition if the business is shutting down. But, consumers (filing by themselves or with their spouse) must meet several requirements if they want to discharge debts in a Chapter 7 bankruptcy.
Do you qualify for bankruptcy if you have negative income?
Another qualification for receiving a bankruptcy discharge under Chapter 7 is an income requirement. If you are asking “Do I qualify for bankruptcy even if I have a job,” the answer is maybe. Chapter 7 is typically reserved for individuals who have a “negative” income each month because they do not have the money to pay bills.
What to ask yourself before you file Chapter 7 bankruptcy?
One good question to ask yourself if you’re considering Chapter 7 bankruptcy: do I have more debt than I’ll ever be able to pay back, given my current income and property? If the answer is yes, then Chapter 7 bankruptcy may be the right option. What is Chapter 7? How does it work?
What kind of bankruptcy do I need to file?
There are two major forms of bankruptcy for individuals: Chapter 7 and Chapter 13 and each one has specific monetary qualifications. Chapter 7 bankruptcy is designed for people who truly can’t afford to pay their bills. Some people have income too high for bankruptcy.
When do you have to take credit counseling to file bankruptcy?
Every person who files for bankruptcy has to take a credit counseling course in the 6 months before their bankruptcy petition is filed with the court. This is a requirement in both Chapter 7 and Chapter 13 cases. The course has to be taken through a credit counseling agency that is approved by the Department of Justice.
How can I get help with my bankruptcy application?
You cannot submit your application until you’ve paid the full fee. You can pay in instalments if you cannot afford to pay it all at once. If you are struggling to pay the fee, contact a debt adviser about charities that may be able to help. Get help from a debt adviser. You can also contact the Insolvency Enquiry line.