The most common forms of bankruptcy are chapters 7 and 13. The first step is to establish if your income is above or below the median for Allen County. This median is $42,277 for the Ft. Wayne area. If your income is above this figure, you qualify for chapter 13. However, you could also be eligible for chapter 7, if you have qualifying properties and assets. Anyone with an income level that is below this median is eligible for chapter 7 only. To perform the means test the attorney must possess current income statements such as pay-stubs.
Indiana residents who wish to file for bankruptcy are required by law to attend a state-approved credit-counseling program as their first step. During this process, they learn how to manage their finances properly. Among the topics covered is budgeting. If you are a resident and wish to file your own claim, you should contact Ft. Wayne Bankruptcy Attorneys today. To qualify for bankruptcy your attorney must conduct a means test. This test determines whether or not you are eligible to start a case in your preferred chapter of bankruptcy.
He or she must also review your income tax returns for the last two years. The goal is to establish your income for the last six months prior to filing a claim. Next, the attorney calculates your monthly expenses. This includes obligations that you have such as credit card, loans, and insurance payments. Your household expenses such as utilities, rent or mortgage payments, and necessity requirements are established at this time. A tip for anyone filing for bankruptcy is to begin this process during months when costs are higher. This could allow you to achieve a greater monthly expense allowance, if you have chosen to file for chapter 13. Filing for bankruptcy offers several benefits.
However, you are restricted to certain limitations based on the chapter you file. You should review these limitations before you file a claim as they begin as soon as the case is approved by a judge.