Is there such a thing as making too much to qualify for chapter 7 bankruptcy? - Bankruptcy Law Questions and Answers- LawQA.com

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Is there such a thing as making too much to qualify for chapter 7 bankruptcy?

Both my husband and I make a total annual salary of $130,000. Would we still be able to qualify for Chapter 7 Bankruptcy?

Mercado & Hartung, PLLC
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Yes, you are likely above the median income and don't qualify under the Means Test.

Answer Applies to: Washington
Replied: 11/14/2011

Theodore N. Stapleton, PC
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Probably not it depends upon what monthly payments you pay to secured creditors.

Answer Applies to: Georgia
Replied: 11/9/2011

Answer By Cate Eranthe
Eranthe Law Firm
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You need to find an attorney to perform the long form of the means test calculations. If you have high medical expenses, mortgage and other secured debt it is possible to pass the means test even if you are over the median average which you are. The median average in California just went down and is $61,539 total annual income. Even if you don't pass the means test you could still file a chapter 13 if your debt is not over the ceiling. Go and see a knowledgeable local bankruptcy attorney who can advise you based on your individual circumstances.

Answer Applies to: California
Replied: 11/8/2011

Answer By David VanDyke
Bird & VanDyke, Inc.
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The income allowed by the court is establised by IRS standards for median income based on family size. The median income is a little different in each jurisdiction but I can give you a rough guide by using the standards in my county in California. 1 person approx $48,000 per year 2 people aprox $62,000 per year 3 people approx $68,00 per year 4 people approx 78,000 per year 5 people approx 85,000 per year If you are making $130,000 per year you are going to be over the median income. If you are over the median you must take the means test. The means test allows certain deductions including mortgage payments, car payments, payroll deductions and a host of other deductions. You may still qualify for a chapter 7 but you are going to need a skillful bankrutpcy attorney to do a proper means test. Do not try to file this yourself. If you do qualify you will be filing an agressive chapter 7 and you will need an attorney.

Answer Applies to: California
Replied: 11/8/2011

Answer By Eric Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis
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If the majority of the debt involved is "consumer debt," then yes, there are limitations on how much you can make and still be able to file Chapter 7 bankruptcy.

Answer Applies to: Indiana
Replied: 11/8/2011

Answer By Phil Boardman
Philip R. Boardman, Attorney at Law
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Generally speaking, you probably would not qualify for a Chapter 7 bankruptcy since you make more than the median income. For example, in a household size of 4, the median income in Virginia is approximately $85,000. However, you may still qualify if you have special circumstances.

Answer Applies to: Virginia
Replied: 11/8/2011

Braunstein Law, PC
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Eligibility for a Ch7 is based in large part on income. If a family's income is above the median income for a family of their size, they will likely be forced to file a Ch13 as opposed to a Ch7 bankruptcy.

Answer Applies to: Oregon
Replied: 11/8/2011

Answer By Mengjun Qiu
The Law Offices of Kristy Qiu
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No, you will most certainly not qualify for chapter 7, unless the difference between your monthly income and allowed expenses as per the IRS parameters is lower than $120.

Answer Applies to: Florida
Replied: 11/8/2011

Answer By Andrew Harris
Law Office of Andrew Harris
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There are income limitations for a Chapter 7 based on several factors including but not limited to: The number of people residing in the household, taxes and insurance, housing, medical costs etc. You need to meet with an attorney and provide the last 6 months of pay history so they can run a means test. This is the only way to know if you qualify. It is unlikely that you would based on your income amount, but I would not discount a Chapter 7 until after the means test has been completed.

Answer Applies to: Oregon
Replied: 11/8/2011

Answer By Katie M. Stone
The Law Offices of Katie M. Stone
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In order to file for a chapter 7 you must pass the means test which is a detailed analysis of your income and your expenses along with some standard exemptions. Your income must be under the median income in order to pass the test and qualify for a chapter 7.

Answer Applies to: Florida
Replied: 11/8/2011

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