Anybody could unexpectedly lose their money and end up filing for Chapter 7 bankruptcy. The Casper Star-Tribune recently reported that Austin "Kit" Jennings, a state senator in Casper, Wyoming, filed for Chapter 7 bankruptcy protection after losing a lawsuit.
The Republican senator reportedly filed for bankruptcy on December 9 in order to stop creditors from collecting money that he owes them. Through Chapter 7 bankruptcy, the Wyoming senator plans to liquidate his property and discharge certain debts. The man's top creditors include Hilltop National Bank, which holds the mortgage on his house, and Brown & Hiser in Laramie, the law firm that represented him in a case against Wyoming Machinery Co. The Internal Revenue Service is also reportedly seeking $116,629 in back income taxes from Kit Jennings.
FindLaw states that in order to qualify for Chapter 7 bankruptcy, the debtor's income must have income that is equal or below the median income in the state where the bankruptcy petition is filed. A debtor might ineligible for Chapter 7 bankruptcy if he or she had debt previously discharged under Chapter 7 protection with the past eight years or had debt discharged under Chapter 13 protection within the past six years.
In Arizona, it's a good idea to speak with a Phoenix bankruptcy attorney to learn more about the types of debts that can be discharged through Chapter 7 bankruptcy. Tax debt, child support, and debt created by fraudulent means are all types of debt that cannot be discharged through bankruptcy.