Bankruptcy Qualifications

If you are in a financial situation that you believe only to be able to be resolved by filing bankruptcy, you need some information. First of all, there are two types of bankruptcy available to people. The two types of bankruptcy are Chapter 7 and Chapter 13 bankruptcy. However, there are qualifications for filing bankruptcy. The qualifications are due to a revision in bankruptcy laws in 2005. Qualifications vary depending on the type of bankruptcy you are planning on filing.

Chapter 13 is a type of bankruptcy that requires that you have a source of income to be able to file. You must qualification is that you live in the United States or own property in the United States. Your total unsecured debt must be $250,000 or less and your total secured debt must be $750,000 or less.

Chapter 7 bankruptcy is similar to Chapter 13 bankruptcy in that there are also qualifications for filing this type of bankruptcy. To qualify for Chapter 7 bankruptcy, the debtor can be a business owner, corporation or individual. It makes no difference what the amount of debt happens to be. In other words, there are no limits.