If you are interested in filing for Chapter 7 Bankruptcy but are unsure of how to go about doing so or of how to qualify for this process, then informing yourself of basic bankruptcy laws and regulations is vital. First of all, you should know that bankruptcy should never be a first choice. It is not an easy way out of financial difficulties and, in fact, should be looked to as a last resort and never a first choice. Other options such as debt consolidation, debt settlement, budgeting, or credit counseling should be considered before looking to bankruptcy. If, however, none of these work and bankruptcy really is looking like the best solution, then you will want to speak with a bankruptcy lawyer or a financial advisor as soon as possible. This individual can help you to determine which type of bankruptcy will be best for you or point you in the direction of other forms of aid or assistance in the event that bankruptcy is not a realistic option for your situation. If you are having financial difficulties that will prevent you from hiring an attorney, look into reduced cost or even pro bono legal services in your area.

Most people who file for bankruptcy do file for Chapter 7 Bankruptcy, but as you are already aware, not everyone will qualify for this process. One of the first requirements for filing for Chapter 7 Bankruptcy is that you prove that you do not have the money at your disposable to feasibly pay off your debts. This is generally determined by doing an assessment of your income, especially your disposal income, and all the bills and other financial obligations you currently have. This is why attempting to file for bankruptcy when budgeting or other forms of debt management are available to you is a complete waste of time. Furthermore, your current monthly income will also be an important factor in determining your Chapter 7 eligibility. Those whose income is higher than the average amount for a family of comparable size will not be able to file for Chapter 7 Bankruptcy unless they can pass the means test. Individuals who have filed for bankruptcy in the past or who have purposefully defrauded or cheated any creditors will also not be eligible for Chapter 7 Bankruptcy.

If you find that Chapter 7 Bankruptcy is not a viable option for you, the good news is that there are other forms of bankruptcy. The second most common type is Chapter 13 Bankruptcy, and this is often the best option for those who were ineligible for Chapter 7 Bankruptcy due to high income levels. Talking to a lawyer about bankruptcy and about what you hope to gain or accomplish from the proceedings is the best way to get solid, practical advice on the type of bankruptcy you should file for and on any and all eligibility requirements.