Unit 5 DB - Anyone, business or otherwise, can file for...

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Anyone, business or otherwise, can file for chapter 7 bankruptcy. Under the new rules, the first step to understanding if you can file for Chapter 7 bankruptcy is to measure your “current monthly income” against the median income for a family of your size in your state. Your “current monthly income” is your average income over the last six months before filing. If your income is less than or equal to the median, you can claim Chapter 7 bankruptcy. If your income is above the median, however, you must use “means test”, another requirement of the new law in order to file for Chapter 7 bankruptcy. The only exceptions are if the debtor has met with credit counselors and made a plan up to 180 days before filing for chapter 7. If a bankruptcy plan was dismissed by the courts because the debtor hasn’t appeared in court and didn’t follow their orders. Another exception to the filing of chapter 7 bankruptcy is if the debtor accepted the creditor’s recovery terms for property liens and now decided to file chapter 7.
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Unit 5 DB - Anyone, business or otherwise, can file for...

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