The Two Main Requirements For Filing Bankruptcy In Delaware
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The Two Main Requirements for Filing Bankruptcy in Delaware
Overview
Filing for bankruptcy is designed to provide relief to honest individuals facing overwhelming debt due to unfortunate circumstances. This process enables them to discharge these debts and embark on a fresh financial start?"a principle upheld by the Supreme Court in 1934. If you're a Delaware resident considering bankruptcy, there are essential steps to follow to gain the debt relief you need. Here’s an overview of the two primary requirements for filing bankruptcy in Delaware.
Key Requirements
Credit Counseling
Under the Bankruptcy Act of 2005, anyone filing for bankruptcy after October 17, 2005, must undergo credit counseling six months prior. Additionally, a financial management course must be completed after filing.
Means Test
The Means Test, also mandated by the 2005 act, requires comparing your average income and expenses from the past six months with the state’s median income. If your income is below the median, you can file for Chapter 7 bankruptcy. If it exceeds the median, further evaluation will determine whether you qualify for Chapter 7 or Chapter 13.
The Bankruptcy Process
Once these requirements are met, a bankruptcy judge will decide on matters related to your filing, including which chapter you qualify for and which debts will be discharged. The process is largely administrative and occurs outside court formalities. For detailed procedures, contact your local courthouse.
When to Consider a Bankruptcy Attorney
Several situations may necessitate consulting a bankruptcy attorney, such as:
- Wage Garnishment: Garnished wages for child support or alimony can exacerbate financial strain. If it affects your ability to pay for essentials, consider seeking legal advice.
- Foreclosure: Falling behind on mortgage payments and facing foreclosure warrants speaking with a bankruptcy attorney. Bankruptcy can help you keep your home and manage payments.
- Repossession: If your vehicle faces repossession due to missed payments, an attorney can assist you in regaining financial control and preventing repossession.
- Debt Collection Harassment: Although collectors can't legally harass you, persistent calls can be daunting. Bankruptcy can stop these calls effectively.
Conclusion
Facing financial difficulties can be incredibly stressful. Whether dealing with garnishment, foreclosure, repossession, or harassment, consulting a bankruptcy attorney can help you resolve these issues and restore financial stability.
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