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How much income is too much for chapter 7?

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2013-07-04 13:28:52
2013-07-04 13:28:52

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


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.


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


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.


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


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.


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.


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.


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.


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


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.


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.


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.


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


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.


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")


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


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.


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


If you are disabled, your income is probably below your state's median income and you can qualify for chapter 7. I'm not sure how else disability matters.


can i convert my chapter 13 to a chapter 7 if i filed a chapter 7 in 2005


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


Soda's girlfriend moved to Florida because she got pregnant.


Chapter 7 of the bible will always be chapter 7.



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