Bankruptcy

Do you qualify to file a Chapter 7 "liquidation" bankruptcy? There are three main factors to consider. One is your income and living expenses. If your income is below the median income and you use it all for living expenses, you probably qualify. Do you have too much property? You are allowed a certain amount of equity in a home and basic furniture, furnishings and personal property. If you do not need to use the homestead exemption, you have a "wildcard" exemption ($18,350) that you could use on some item(s) that normally would not be exempt such as a car more valuable than the car exemption (which is $2775). And finally, are your debts of the type that can be discharged. Credit cards, personal loans and medical bills normally can be. Student loans and divorce obligations normally cannot be discharged. Some taxes can be.