An unfortunate myth surrounding bankruptcy is that the benefits of bankruptcy are out of reach for people with low incomes. This idea goes against the very purpose of bankruptcy, which is to help people of all incomes solve their debt woes.
In fact, low-income bankruptcy help is available in several forms, from filing fee waivers to Chapter 7 bankruptcy exemptions.
Learn more about filing bankruptcy with a low income by filling out the form below. You can connect with a local attorney for a free consultation.
Chapter 7 bankruptcy allows people in debt to discharge some or all of their unsecured debts, including credit card bills, medical debt, and some personal loans. Chapter 7 is specifically designed for people with little or no income.
If you're curious about your eligibility for Chapter 7, take a few seconds to understand the Chapter 7 means test, which simply measures your income with your state’s median wage level. A local attorney can also help you determine your eligibility under Chapter 7.
In addition, bankruptcy courts protect important kinds of property owned by low income filers, and state laws often exemptions for the following items from collection by creditors:
Bankruptcy exemptions vary by state, but they are all designed to help people with low-incomes relieve their debts through bankruptcy while causing the least amount of disruption in their everyday lives.
You may also be able to file for Chapter 13 bankruptcy, which offers relief from additional types of debt compared to Chapter 7, and can also be used to halt foreclosure.
Chapter 13 bankruptcy is designed to create a debt repayment plan over a period of three to five years. The plan is based on your disposable income, and may be available to these earning a low wage. An attorney can help you determine if Chapter 13 is an option for your situation.
While the basic structure of Chapter 7 is already designed to help people with low incomes file bankruptcy, there are other bankruptcy features that may provide further assistance to low-income filers.
These helpful bankruptcy features include:
Of course, while there are several ways for low-income people to benefit from bankruptcy, many filers also prefer to consult a local attorney. By taking steps to ensure that the bankruptcy is done right, it may be possible to save money in the long run.
For more information on eliminating debt and obtaining low-income bankruptcy help, contact a local bankruptcy lawyer today.
PAID ATTORNEY ADVERTISEMENT: THIS WEB SITE IS A GROUP ADVERTISEMENT AND THE PARTICIPATING ATTORNEYS ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. Your request for contact will be forwarded to the local lawyer who has paid to advertise in the ZIP code you provide. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network nor does it analyze a person's legal situation when determining which participating lawyers receive a person's inquiry. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The information contained herein is not legal advice. Any information you submit to Total Bankruptcy does not create an attorney-client relationship and may not be protected by attorney-client privilege. Do not use the form to submit confidential, time-sensitive, or privileged information. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys. An attorney responsible for the content of this Site is Kevin W. Chern, Esq., licensed in Illinois with offices at 25 East Washington, Suite 400, Chicago, Illinois 60602. To see the attorney in your area who is responsible for this advertisement, please click here, or call 866-200-8052.
FLORIDA ONLY: Total Bankruptcy is considered a lawyer referral service in the state of Florida under the Florida Rules of Professional Conduct. By all other standards, Total Bankruptcy is a group advertisement and not a lawyer referral service.
If you live in Mississippi, Missouri, New York or Wyoming, please click here for additional information.
By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.