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How Does Bankruptcy Work in Delaware? In most respects, filing for bankruptcy in Delaware isn't different from filing in another state. The bankruptcy process falls under federal law, not Delaware state law, and works by unwinding the contracts between you and your creditors. That's what gives you a fresh start.
If your total monthly income over the course of the next 60 months is less than $7,475 then you pass the means test and you may file a Chapter 7 bankruptcy. If it is over $12,475 then you fail the means test and don't have the option of filing Chapter 7.
Third Circuit Bankruptcy Courts | Third Circuit | United States Court of Appeals.
?I think companies file in Delaware because they can ? most of these companies that file in Delaware could file elsewhere,? he said. ?They choose Delaware because it's the better venue, and it's not just the companies ? it's their creditors, to the extent creditors choose.?
Fraud. A court might disqualify you from the bankruptcy process if they believe you attempted to defraud your creditors. This also applies to situations where debtors attempt to hide their assets.