People often want to know if they qualify to file Chapter 7 Bankruptcy in Rochester, Minnesota. The answer hinges on the answer to a couple of questions. For example, the Bankruptcy Code precludes people from filing Chapter 7 Bankruptcy (and receiving a discharge) if they have previously filed Chapter 7 or 13 Bankruptcy and received a bankruptcy discharge in a certain period of time.
Bankruptcy Code Section 727(a)(8) precludes a Rochester, Minnesota resident from filing Chapter 7 Bankruptcy (and getting a discharge) if you have filed a Chapter 7 Bankruptcy and received a bankruptcy discharge in the previous 8 years. The Code also states you are precluded from receiving a Chapter 7 discharge if you have received a Chapter 13 discharge in the previous 6 years.
But once you satisfy this hurdle, there is another hurdle. Section 707 of the Bankruptcy Code describes situations where the US Trustee’s Office can bring a motion to dismiss your Chapter 7 Bankruptcy case. Now, we don’t want to get overly bogged down into the weeds with this. The idea here is if you have the ability to pay part of your debt back you should. We first determine if your income is over or under Minnesota’s median income. If it is over the median income, than we apply a test to determine whether you have disposable income or you do not.
What I would say to you is this—if you have money left over after paying your reasonable and necessary expenses (not including any payments on credit cards or other unsecured debt), than you will likely need to file a Chapter 13 Bankruptcy. But, if you do not, than you can file a Chapter 7 Bankruptcy.
When the time is right, or when you are ready, reach out to Kain & Scott at www.kainscott.com. You will be so thankful you did!