What are the eligibility criteria for filing bankruptcy?

Filing for bankruptcy is a significant decision and involves specific eligibility criteria that individuals or businesses must meet. For personal bankruptcy, there are primarily two types of filings to consider: Chapter 7 and Chapter 13. To qualify for Chapter 7 bankruptcy, the individual must pass a means test. This test compares the individual's income to the median income for their state. If the person's income falls below the state median, they may qualify for Chapter 7. However, if the income exceeds the median, additional calculations will need to be performed regarding allowable expenses and debt payments. On the other hand, Chapter 13 bankruptcy is generally available to individuals with regular income and a secured or unsecured debt limit. The debt limits for Chapter 13 are periodically adjusted, so it is important to check the current thresholds. To be eligible, an individual must have a stable source of income to propose a repayment plan over three to five years. Furthermore, prior to filing, individuals must complete a credit counseling course from an approved agency and obtain a certificate of completion. It is important for individuals or entities considering bankruptcy to review these requirements closely and understand the potential impact of filing. Your best course of action would be to look at the official Suntrust website or similar resources for the most current and accurate information regarding eligibility criteria and the bankruptcy process.