What is required in Order to File a Chapter 7?
Requirements for Chapter 7
When newer bankruptcy laws were passed into law in October of 2005, individuals who wanted to file a Chapter 7 Florida bankruptcy in order to liquidate their debts were now facing stricter requirements for filing. The purpose of the stricter criteria was put in place in an attempt to limit the amount of abuse that the law was experiencing at the hands of those individuals who wanted to quickly eliminate their indebtedness. In essence, these newer 2005 bankruptcy laws made it harder for a person to qualify for Chapter 7.
The “Means” Test
Whether you are trying to qualify for a Chapter 7 or 13, and before filing either, you must first pass what is referred to as the “Means” Test. The Means Test determines whether or not you qualify based on financial evaluation that is divided into two parts. If the test determines that you have the financial means to qualify for a Chapter 13 – reorganization and repayment – you will be required to file this instead of Chapter 7. On the other hand, if the test determines that you do not have the financial capabilities, then you may proceed with a Chapter 7 filing.
Credit Counseling Requirements
Once it has been determined by the Means Test that you are eligible to file a Chapter 7, you will have to obtain what is called a “credit counseling certificate.” Your Clark & Washington attorney can assist you with this if you haven’t already done so. The certificate requirement evolved out of the 2005 bankruptcy laws, and to obtain one you simply attend a class that lasts between 45 and 90 minutes. The cost is no more than $50 and you must complete this within 6 months of filing your Chapter 7.
Other Required Documents
There are several other documents required in order to file a Chapter 7 bankruptcy. These include the following:
- Disclosure as to whether or not you were a party in a lawsuit within the past year or are currently a party to a pending lawsuit
- Documentation which proves your income
- Documentation regarding your assets and the total value
- Listing of all current debts
- Monthly expense report
Additionally, your attendance in a “Financial Management” course will be required once you have filed your Chapter 7 petition. The firm of Clark & Washington is mid-Florida’s largest bankruptcy filer and can handle your case. For more information, please call us at (407) 898-0299 or feel free to fill out the confidential contact form found on this website.
