Your qualification to file a bankruptcy case doesn’t depend solely on your salary, but on your entire financial situation. The only way to determine whether you are eligible to obtain bankruptcy relief is to confer with a knowledgeable bankruptcy lawyer. Below are few factors that will be considered:
In 2005, the bankruptcy laws were amended and one of the changes was the creation of the means test. This test is used by the court to ensure that you are not abusing the bankruptcy process (filing for relief when you can afford to pay your debts). In order to pass the means test, your total gross income for the six months preceding the filing of your Chapter 7 petition multiplied by two must be less than the median income for your household in the state where you reside. Passing the means test means you qualify to file a Chapter 7 bankruptcy. If you do not pass the means test, you may still be able to file a Chapter 7 or you can file a Chapter 13 case.
If your income exceeds the median income in your state, you should consider a Chapter 13 filing. In a Chapter 13, the debtor files a repayment plan that sets forth how you intend to repay your creditors. In your plan, you can restructure your payments, get caught-up on delinquent amounts and make a manageable monthly payment to the trustee who will distribute the funds to your creditors.
If you are interested in learning whether you qualify for a Chapter 7 or Chapter 13 filing, contact us to schedule an initial consultation today.
If you would like a down-to-earth approach and a lawyer who will listen carefully to all your questions and concern, call DeLadurantey Law Office, LLC,at (414) 377-0518. We serve clients primarily in the areas of student loan law, Chapter 7 and Chapter 13 bankruptcies, debt negotiations and defending foreclosure actions. If you live in the area of Milwaukee, Wisconsin, call us for the debt relief assistance you need. Visit our web site and like us on Facebook.