Bankruptcy is designed for those whose debt level greatly surpasses their income. However, that does not necessarily mean that a steady paycheck can prevent you from filing for bankruptcy protection.
You can make too much money to file for Chapter 7 bankruptcy, but there are no maximum income levels that would prevent people from filing for Chapter 13 bankruptcy.
There are, however, maximum debt limits that may prevent individuals with millions of dollars in debt from filing Chapter 13.
To learn more about qualifying for bankruptcy, fill out the brief form below and arrange a free consultation with a local bankruptcy lawyer.
Chapter 7 bankruptcy requires that an individual passes a means test, which usually limits Chapter 7 to filers who have relatively modest incomes.
Most people, though, can file for Chapter 13 bankruptcy, regardless of their income level. Chapter 13, which allows you to consolidate your debts into a single repayment plan, is designed for people with a steady source of income, regardless of its size.
There are some limits, however, on filing for Chapter 13. These include:
So, Chapter 13 is widely available to most filers. The next section will address the limitations of Chapter 7.
Eligibility for Chapter 7, as mentioned above, depends in part on your ability to pass the Chapter 7 means test. The means test works like this:
Remember, though, if you do not pass the Chapter 7 means test, you may still be eligible to file for Chapter 13. Learn more about filing requirements by arranging a free consultation with a local bankruptcy lawyer today.