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Income has little to no determination on one's ability to file for bankruptcy. It's the debt to income ratio that most bankruptcy courts look for. Consult a bankruptcy attorney; there may be other options that will not impact your credit as harshly as bankruptcy.

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โˆ™ 2013-07-04 13:28:52
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Q: How much income is too much for chapter 7?
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Are there exceptions to the chapter 7 income test if the person has too much income to qualify now but believes they will not be able to complete a chapter 13 due to impending heart surgery?

Unfortunately bankrupcy laws do not allow for what may or may not happen in the future. An option might be for the petitioner to file the "13" and if the surgery becomes a reality try to have the "13" dismissed, then file a chapter 7.


Does income count AFTER you file chapter 7?

The income you make after filing for chapter 7 does not count. What counts is all you had before filing.


What is a means test for filing chapter 7 bankruptcy?

The means test is a quick measurement to see if you can file a chapter 7 (means test are not done in a chapter 13). The test is simply comparing your income to your state's average income based on family size. So if your income in a household of 3 (for example) is lower than the state's average income for a household of 3, you may file a chapter 7. If you "pass" the means test, there is no presumption of abuse. It is still possible to file a chapter 7 if your income is above the state average, but that would require a much more detailed financial analysis of your income and expenses. Your local BK courts usually have a link to find your average state income.


Does income count AFTER you file chapter 7 bankruptcy?

A person's income does not count after filing chapter 7 bankruptcy. All that counts is what you had before filing bankruptcy.


What were the chapter 7 bankruptcy laws in 2001?

Bankruptcy laws changed dramatically in 2005 and make it considerably harder for people to file chapter 7 bankruptcy, those people who do not qualify for chapter 7 are left with the option of chapter 7. Some of the major changes with chapter 7 are:In a Chapter 7 bankruptcy, the income of the person filing will be subject to a two-part test. First, your income will be calculated with exemptions such as rent and food to determine whether you can afford to pay 25 percent of your unsecured debt such as your credit card bills. Second, your income will be compared to your state's median (middle) income.You won't be allowed to file for Chapter 7 if your income is above your state's median income and you can afford to pay 25 percent of your unsecured debt. Even if your income is below the state's median income and you can pay 25 percent of your unsecured debt, the court may still deny your Chapter 7 filing. There will be very few exceptions to this test, no matter how sympathetic your case is.


Is there a income limit for filing chapter 7 for an individual?

No. The question is, do you make enough money to be over the median income for your state, then do your expenses leave you with no income to do a Chapter 13 Plan.


Can you file bankruptcy if you are not employed?

Yes- a chapter 7, but not chapter 13, as that requires a regular income.


Do you need a minimum income to qualify for a chapter 7 bankruptcy?

No.


Can you keep your cars in a chapter 7 bankruptcy?

Yes, you can keep you car in chapter 7 bankruptcy. In Chapter 7 bankruptcy there are some rules. You can only file Chapter 7 if your income is below your state's median or is not enough to pay off your current debt.


You have huge debt medium income do not want chapter 13 will divorce let us file chapter 7?

Divorce will not affect filing chapter 7. If the divorce is final, you will have to file separate chapter 7s. If the divorce is not final, or has not happened, you can file a joint chapter 7.


How did the bankruptcy law change for chapter 7 filings in 2005?

It added a means test to determine the eligibility of debtors to file under chapter 7. For example, there are certain income restrictions that prevent people from filing chapter 7, if there income to debt ratio proves they could pay back some of their debt.


Can a person with only social security income file chapter 7 to discharge their medical debts if they live with their parents?

In a word yes. You sound like a perfect candidate for chapter 7 bankruptcy. The court looks at an individual's income, which would include the social security income, and the debtor's expenses. The income is listed on schedule I and expenses on schedule J. To file chapter 7 there cannot be any disposable income (the difference between the income and expenses) left over. If money is left over, then the court would say, you have money left at the end of the month, so file chapter 13 and pay your creditors that amount. I assume your social security income is low, but since you live with your parent's maybe your expenses are not high. Again, your expenses need to be basically the same of a negative to file chapter 7. Hope that made sense and helped.


Is your social security retirement income exempt for chapter 7 bankruptcy?

yes


I need to know how to file bankruptcy.?

You need to contact a bankruptcy lawyer since you need to have one to file. Which chapter depends on how much money you have, you may not qualify for chapter 7 if you have too much money.


What changed in Chapter 7 and chapter 13 bankruptcy after 2005?

Major changes were made to bakruptcy law in 2005, making it harder to file for chapter 7 and deferring more people to chapter 13.In a Chapter 13 bankruptcy, the court will apply IRS living standards to determine what is reasonable for expenses such as rent and food, and the rate you need to repay your debts. The IRS standards are more strict than the courts have been in the past.In a Chapter 7 bankruptcy, the income of the person filing will be subject to a two-part test. First, your income will be calculated with exemptions such as rent and food to determine whether you can afford to pay 25 percent of your unsecured debt such as your credit card bills. Second, your income will be compared to your state's median (middle) income.You won't be allowed to file for Chapter 7 if your income is above your state's median income and you can afford to pay 25 percent of your unsecured debt. Even if your income is below the state's median income and you can pay 25 percent of your unsecured debt, the court may still deny your Chapter 7 filing. There will be very few exceptions to this test, no matter how sympathetic your case is.


How much does it cost to file chapter 7?

The cost to file Chapter 7 will vary depending on the type of bankruptcy. Chapter 13 costs $281. Chapter 7 costs $306.


If you have a chapter 7 discharged and then something happens with your home can you open a chapter 13 to save your house then you change your mind and the chapter 13 is dismissed what does thi?

What happens if you have paid all fees for a chapter 7 bankruptcy and your trustee tells you to turn over your income tax check and you don't because you are laid off and you are using the income tax check to pay bills and medical expenses and the trustee has threaten to revoke your bankruptcy due to non payment of your income tax check


Is there a period of time after filing for bankruptcy you should wait for income that isn't affected?

In a chapter 7, no post petition income constitutes property of the bankruptcy estate. So to answer, no. In a chapter 13 or 11, all post petition income constitutes property of the estate.


If you want to file chapter 7 and you are single person is there an amount of income you can only make in a year?

There is a "means test" for filing consumer bankruptcies, and if you earn more than the median family income in your state, you have to see if your deductions from the gross income make you eligible to file a Chapter 7. Otherwise, you have to file a Chapter 13. You can find the median family income for each state at the US Trustee's website, accessible from your bankruptcy court's website. ("Links")


Do have to work in order to file a chapter 13?

You must be generating a steady income to file chapter 13 bankruptcy, regardless of whether it is earned income. If you don't currently have income, chapter 7 most likely is the better way to file bankruptcy. There is an excellent book that gives you a substantial perspective on filing chapter 7 or chapter 13 bankruptcy: "The New Bankruptcy, will it work for You?", 3rd edition, by Stephen Elias (published in 2009 by Nolo) -- I found it in the Colorado Springs public library at 346.078 E42N (Dewey decimal system).


Can you convert your chapter 7 bankruptcy to a chapter 13?

Yes, the necessities would be to be eligible for a chapter 7. If the means test was why you filed a chapter 13, then you would want to re-examine your income now to see what has changed. The pros - you no longer have a plan payment to make


Can you file a chapter 7 bankruptcy without your spouse in CA?

Yes you can file without your spouse..although you must report the spouse's income on the means test which determines if you qualify to file a Chapter 7.


Do you have to pay taxes on a chapter 7 bankruptcy discharge?

Presuming you mean on the cancellation of indebtedness income - generally not.


If you filed Chapter 7 last year but were given a 10K exemption do you have to claim this on your income tax this year?

No


Is it legal in KY for the lender to garnish your income taxes?

noboby can garnish your income tax except for the government. Unless they take you to court. If they do that file chapter 7.