There are people who consider bankruptcy but ultimately decide not to file. In some cases, this is because they simply assume that they will not be eligible.
For example, maybe you have been trying to look for ways to resolve your debt issues and create a positive financial future, but you still have a job and a steady income. You know that filing for Chapter 7 bankruptcy means you have to pass a means test. The government is going to look at your income and assets to determine if you are eligible to use Chapter 7 in the first place. Because you still have money coming in, you think that you will not pass the test, so you believe this means you are ineligible for bankruptcy and should not bother looking into it any further.
There are other types of bankruptcy
You may be ineligible for Chapter 7 if you do not pass the means test, but that does not mean you cannot file for bankruptcy. You may just need to look into other types of filings.
One example of this is filing for Chapter 13 bankruptcy, which is specifically designed for people who still have an income. With Chapter 13, your debt is consolidated and put into a repayment plan. For the next three to five years, you make the monthly payments. The amount that you have to pay will be based on your personal factors, such as the amount of debt being consolidated and the level of income that you have. Essentially, the court determines what you can afford to pay and creates a plan that will work for you moving forward.
In other words, do not assume that you are ineligible for bankruptcy. Take the time to look into your legal options.
