Who Can File For Bankruptcy?

Bankruptcy Definition, according to Merriam-Webster dictionary: “a condition of financial failure caused by not having the money that you need to pay your debts”.

Purpose of Bankruptcy: to give the debtor a fresh start by eliminating debts AND fairly pay creditors the debts they are owed.

Bankruptcy Limitations: you must pass the Means Test in order to qualify for Chapter 7 bankruptcy. This test determines if your income is low enough to get most of your debts discharged. For Chapter 13 bankruptcy, there is a limitation of how much secured and unsecured debt you may possess.

Advantages of Bankruptcy: filing for bankruptcy allows you, the debtor, to restructure and eliminate your debt and get a fresh start with your finances.

Consequences of Bankruptcy: bankruptcy severely damages your credit score and remains on your record for up to 10 years, making it difficult for you to take out new loans and possibly obtain good employment.

Who May File For Bankruptcy: individuals, business entities, municipalities. Some states can file for bankruptcy, but there are limitations and conditions.

Famous People and Companies Who Filed for Bankruptcy: 50 Cent, Betsy Johnson, Heidi Montag & Spencer Pratt, SkyMall Magazine, Caesar’s Palace, Hostess, Wet Seal, DEB Shops, Delia’s.


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Fridlin & Associates, P.C. is a financial law firm for individuals and small businesses in metropolitan New York. If you or your business face a problem concerning bankruptcy, debt settlement, loan modification program, the sale and purchase of residential or commercial real estate, landlord/tenant disputes, enforcing your rights as a creditor, the sale and purchase of a business, or employment litigation, Fridlin & Associates stand ready to provide the solution that protects your best interests. We can help you: Eliminate Debt! Stop Foreclosure! File for Bankruptcy! Apply for a Loan Modification Program! Stop Wage Garnishment! Stop Lawsuits! Eliminate Judgments! Eliminate or Reduce the second mortgage on your home! Reduce the mortgage on your investment property to its fair market value! Eliminate your obligation to pay creditors and medical expenses! Eliminate business loans! Release Frozen Bank Accounts! Stop harassing phone calls! Please call 718-372-4400 today for a free consultation. We have appointments available Monday through Friday and your first visit is free. Fridlin & Associates, P.C., also provides legal representation on wage dispute matters under the Fair Labor Standards Act in both federal and state courts. Learn more about Elaine Fridlin and Fridlin & Associates here. If you’re interested in bankruptcy as a potential solution to your debt management problems, you can learn more about bankruptcy for both consumers and businesses here.

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