Income Limits for Chapter 7 Bankruptcies
Consumers who face difficulty with repaying their debts ultimately have a few choices when it comes to filing for bankruptcy. Two types, Chapter 7 and Chapter 13 are widely available for consumer debt. Chapter 7 makes it possible to eliminate some of these unsecured debts but you will face the potential of possibly losing out on non-exempt property. Chapter 7 bankruptcies ensure that you will have to pay less to your creditors unless you have multiple non-exempt or substantial assets. In order to qualify for Chapter 7 bankruptcy you will have to qualify for a certain income bracket. Passing a qualified means test is one of the easiest ways that you can qualify for Chapter 7 bankruptcy, this ensures that only individuals with the greatest level of need qualify for this type of bankruptcy. This post will detail income limits for chapter 7 bankruptcies and how they affect the process of applying for one.
How Can I Qualify For a Chapter 7 Bankruptcy?
In order to qualify for the means test you will need to fall below the median income for your state. The median income will change each year and in the state of Florida a single earner currently has a median income just under $50,000. The average two-person family has a median income sitting at $60,400. If your income is below this threshold, it’s likely that you will pass the means test. If you’re a single earner and you have an income of less than $40,000 you will easily pass the means test required to file for Chapter 7 bankruptcy.
If you are unable to pay for your basic expenses and your debts, it could be possible that you qualify as well. Cranking up your expenses before you try to file for bankruptcy could limit you in the total amount of debts you could write off. Working to balance your needs alongside your debts can be a wise decision when preparing for bankruptcy
Proper analysis and strategies are going to be important if you’re planning on filing for Chapter 7. Taking on new debts or even acquiring new assets before you file for bankruptcy could work as a detriment to your case. If you feel overwhelmed with your debts it’s important to plan accordingly and work at protecting your assets. Scaling down your lifestyle and cutting expenses is the best way to start reducing your debts.
If you are experiencing multiple overbearing debts, contacting a bankruptcy attorney could be one of the best ways that you could manage your disposable income and work towards paying back some of your debts over time. Going through bankruptcy can be the right choice for many individuals but it is also quite stressful. Contact us today for more information on how our firm’s experience, expertise, and passion can help your unique bankruptcy go as smoothly as possible.