The Two Main Requirements For Filing Bankruptcy In Delaware

Posted by Nick Niesen on October 29th, 2010

The main goal when filing bankruptcy is to allow honest individuals who have had unfortunate events occur which have lead to severe debt, to have these debts discharged, thus relieving the debtor from their previous debts. This allows the debtor to pursue a fresh financial start. This was the decision of the Supreme Court in 1934. If you are a resident of Delaware who is facing severe debt and you are considering filing bankruptcy, you can find the debt relief that you so desperately need. In order to do so there are two main requirements, which are necessary to complete when, filing bankruptcy in the state of Delaware.

Credit Counseling

The Bankruptcy Act of 2005 requires that all persons filing bankruptcy after the date of October 17, 2005, must receive credit counseling 6 months prior to filing bankruptcy. They must also complete a financial management course after the file of bankruptcy.

Means Test

This same act of 2005 requires an individual?s average income and expenses from the previous six months to be compared to the median income of the state. If your income level falls below the median you are able to choose to file Chapter 7. If your income level exceeds the median, your income will be further reviewed for a decision between Chapter 7 and Chapter 13.

Once these areas are completed the bankruptcy judge will make the decision on any of the matters connected to your bankruptcy. They have the final word on which chapter you are eligible to file and which debts will be discharged. The process is mainly administrative and processed outside of the court. Contact your local courthouse for details on who to contact as well as any other bankruptcy details you may need.

There are four typical reasons that you may need to speak with an attorney who specializes in bankruptcy. These four reasons include wage garnishment, foreclosure, repossession and debt collection harassment. These four reasons can lead anyone to consider bankruptcy.

Garnishment

When wages are garnished for child support or alimony, a person can easily become further into debt. If a jobs wages care for that person and their personal lifestyle and garnishment affects the persons ability to make utility payments versus buying food then a bankruptcy attorney is needed.

Foreclosure

If mortgage payments are behind and your home is in danger of foreclosure you should speak to a bankruptcy attorney. There is a bankruptcy chapter that will allow you to retain your home and regain control over your payments.

Repossession

If you have not been able to make payments for your vehicle and it is being threatened by repossession, contact a bankruptcy attorney to help you keep your vehicle and regain financial control and to make payments properly again.

Debt Collection Harassment

Though bill collectors do not legally have the right to call and hassle you over payments, too often you will receive several threatening calls over the period of a single day concerning past due billing. Bankruptcy can quiet these harassing calls quickly and peacefully.

Each of these areas adds unneeded stress into your life. Making payments can be complicated due to various reasons. Speaking with a bankruptcy attorney can be a way to get you back on financial track and to resolve all of the above issues