What does qualify for filing bankruptcy mean? Can I file for bankruptcy even though I have no bills and own no one and have no judgments against me?
Hello, and thank you for the opportunity to assist you.
There are various requirements to qualify for the different chapters in bankruptcy.
For example, to qualify for a Chapter 7, you must have income that is below your state's median income
or, you must pass the means test, which basically means that after subtracting certain allowed expenses, you have no disposable income.
In order to qualify for a Chapter 13, however, you cannot have debts greater than $1,010,650
sorry, that's suppose to be "secured' debts (i.e., mortgages, car loans, etc.)
Your unsecured debts for a Chapter 13 cannot be higher than $336,900
If you don't qualify for either a Chapter 7 or a Chapter 13, then you can file a Chapter 11
Does that answer your question?
Well it looks like thats not an option then. Just don't know where to go from here. There seems to be no help for small businesses when a frivilious law suit is filed.
If your small business doesn't qualify for a Chapter 7, then a Chapter 11 may be an option.
However, you should note that when an individual files for bankruptcy, the point is to give him a fresh start. That is not necessarily true of a business.
If the business has assets that can be sold to repay creditors, then the business could be liquidated.
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