Filing for Bankruptcy in Melbourne, FL, can be done through Chapter 7 and Chapter 13. Chapter 7 is best when there are no fixed assets that have a resale value attached to them. This helps to discharge the individual off the debts incurred. On the other hand, Chapter 13 ensures that the debtor pays the creditors as per the payment plan given at the end of the bankruptcy case. Therefore, a person residing in Melbourne, Florida needs to contact a bankruptcy attorney if he or she faces such a situation. Since Chapter 7 is advantageous to the debtor, many attorneys recommend filing this kind to their clients. It is imperative for a person in this situation to understand that there are certain eligibility criteria to file one.
Passing the Bankruptcy Means Test
This test is a comparison of the monthly income of the person in question with the median family income of the state. If the income level is higher than that of a median income, the person cannot file for Chapter 7. This test is necessary for people who have incurred debts out of which half of it are consumer purchases rather than tax, tort debts or business debts.
Not Had A Recent Bankruptcy Discharge
A person can file for Chapter 7 for Bankruptcy in Melbourne, FL, with the help of any attorney, if the individual was not discharged of bankruptcy within the past eight years nor had a Chapter 13 discharge within the past six years.
Not Had A Bankruptcy Dismissal
If a Chapter 7 petition had been dismissed in the court anytime in the recent 180 days for a violated court order, fraudulent filing, abuse of the bankruptcy system or on a creditor's request, it cannot be filed once again.
It is necessary for the debtor to receive credit counseling from a government recognized credit counselor. This counseling must be completed prior to 180 days of the bankruptcy discharge.A consultation an attorney for Bankruptcy in Melbourne, FL, will provide a clear cut idea about the procedures in general. Therefore it is important to receive a consultation with a good attorney before deciding on the petition. Effective attorneys in the area can be contacted through many sources. The best bet is the internet as there are plenty of efficient law firms and the most appropriate one should be chosen.