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Who is eligible for bankruptcy?


Qualifying for bankruptcy differs from state to state and can be complicated to determine. Some key factors when determining if a person is eligible for bankruptcy are the person's income, number of dependents, and assets, among other variables. There is a sort of calculator called "the means test" that was established to determine whether a person qualifies for bankruptcy and under which chapter to file. Often the biggest factor is owning too many assets for bankruptcy to be a good option. A debtor also cannot file for bankruptcy if the debtor has filed within the past two to eight years depending on which chapter of bankruptcy was filed. If you are considering filing for bankruptcy and want to know if you are eligible, it would be wise to speak to an attorney about it.