Your ability to qualify for a particular bankruptcy petition depends on your monthly income as well as your total debt obligations. For example, you can only qualify for a Chapter 13 reorganization petition if you have enough monthly income to pay back a portion of your debts. If your income isn’t high enough, you might want to consider filing a Chapter 7 liquidation bankruptcy petition.
Chapter 7 bankruptcy involves the liquidation of your non-exempt assets, meaning that a large number of your assets are sold to repay your creditor. A bankruptcy court decides which of your assets should be sold to cover this debt. This video provides a brief overview of the Chapter 7 filing process and how an attorney can help.