Can my parents file for Chter 7 if they are both disabled?
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Can my parents file for Chter 7 if they are both disabled?
My mother has suddenly become disabled.
Asked on September 24, 2011 under Bankruptcy Law, South Dakota
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Your parents can file for Chapter 7 bankruptcy. The fact that they are disabled is irrelevant when filing bankruptcy. Chapter 7 is straight liquidation which eliminates debts. Depending on their income and other factors they may be eligible to file Chapter 7. If they are not eligible to file Chapter 7, they will need to file Chapter 13. A Chapter 13 bankruptcy requires a plan (budget) for repayment of creditors.
It would be advisable for your parents to speak with a bankruptcy attorney to determine whether or not they are eligible to file Chapter 7 or whether they will need to file Chapter 13.
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