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Filing for Chapter 7 bankruptcy allows a debtor to discharge most types of debt that cannot be paid by liquidating nonexempt property. Because the power of Chapter 7 is subject to abuse, in 2005 Congress placed strict limits on who can qualify to file. The Chapter 7 means test is based on median family income by state. If you cannot qualify for Chapter 7 in Florida based on low income, it is still possible to qualify if your disposable monthly income is too low relative to your debts. Disposable income is calculated by deducting certain regional and local expenses.
Chapter 7 bankruptcy helps consumers eliminate debt. With all of the asset and liability issues, howevr, consumers may find it difficult to understand how a Chapter 7 bankruptcy filing works. In Alabama, consumers must meet certain standards before they can file for Chapter 7 bankruptcy protection. Failure to meet these basic qualifications often results in a bankruptcy trustee throwing out a Chapter 7 case.
Even in good economies there are some people who, for a variety of reasons, will not be able to pay their debts. U.S. laws provide for those debtors to get some relief by filing for bankruptcy. You are allowed to file for Chapter 7 bankruptcy only if you meet stringent qualification criteria.
