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How to Qualify for a Chapter 7 Bankruptcy



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I'm gonna answer the question of how do

you file a chapter 7 bankruptcy right

now hello everyone my name is Bob and

welcome to my chapter 7 YouTube channel

if this is your first time here and you

want to learn how to prepare and file a

chapter 7 bankruptcy start now by

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don't miss a single video on how to file

a chapter 7 bankruptcy with or without a

lawyer the tips that I'm gonna give you

are meant to help you and not to create

an attorney-client relationship if you

have comments or questions please leave

them down below this video and I'll try

to answer as many as I can if you want

to eliminate debt the very first step

when considering a chapter 7 bankruptcy

is determine if you qualify you see

there are two types of personal

bankruptcies what is called the chapter

7 and the other is called the chapter 13

a chapter 13 bankruptcy is reserved for

people who don't qualify for a chapter 7

because their income is too high so they

must repay their debts over a three to

five year period the second and most

sought after bankruptcy is called a

chapter 7 bankruptcy why do people

prefer a chapter 7 bankruptcy it's

because you don't have to repay your

debts you eliminate them forever here's

the explanation people prefer to file a

chapter 7 bankruptcy because it

eliminates your dischargeable debt but

there are two important factors that

will determine if you qualify for a

chapter 7 bankruptcy the first factor is

that you can only file a chapter 7 once

every eight years the second factor is

that your household income must qualify

under what is called the means test now

what is the means test the means test

calculates your average household

monthly income over a six-month period

based on your household size and the

state where you reside here's the tip

I'm gonna now show you a website that'll

give you a general idea as to whether or

not you

qualify under the means test I'll leave

a link below of where you go to do it

now here's the website first you're

gonna enter the state that you're in and

in this case we're just gonna make it

simple and go to Wisconsin next you're

gonna put in the household size so let's

say a husband and wife are filing and

they have two children their household

size of course would be four next you're

gonna enter in the average gross monthly

income well let's say the husband works

and he makes $5,000 a month gross and

the wife works part-time and she makes

$2,000 a month gross so we're gonna

compare it now and see if they qualify

it remember this is just a general

outlook we hit that and it shows that

the Wisconsin median income is currently

93 thousand five hundred dollars in this

case the husband and wife and four kids

a household size of four their gross

yearly income before taxes is eighty

four thousand dollars that means they're

under the median by ninety five hundred

dollars and they qualify well I hope

this video has been instructive on

explaining the means test and remember

if you want to see more videos please

click on the subscribe button and also

click on the bell so you can get alerted

to when new videos are being posted I've

also left a link below showing you where

you can go we could get a general idea

of whether or not you qualify it's a

simple calculation all right we'll see

you next time take care