Can a person with high income still file chapter 7 bankruptcy? How? 16 Answers as of July 16, 2015

I have a high income and very high debt. Can someone with a high income still file and qualify for a chapter 7 bankruptcy?

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Charles Schneider, P.C.
Charles Schneider, P.C. | Charles J. Schneider
Yes by passing the means test or proving that it does not apply to you.
Answer Applies to: Michigan
Replied: 7/16/2015
Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
If your income is above the median amount in your state, then you must "pass" a "means test" in order to still be able to file a chapter 7 bankruptcy case. The "means test" is a mathematical calculation that is set out in the bankruptcy code that looks at your gross income and deducts allowable expenses to determine whether you can file a chapter 7 or whether you must instead file a chapter 13. If you have high income you will be best off using some of your funds to hire an experienced lawyer to guide you. These are not simple issues or calculations.
Answer Applies to: Colorado
Replied: 7/16/2015
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
You can but your attorney would have to do the means test to see if you can still qualify.
Answer Applies to: New York
Replied: 7/16/2015
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Maybe yes and maybe no. There are a lot of questions that need to be answered before this questions can be answered. I charge a small fee for a one hour meeting. I have successfully filed THOUSANDS of bankruptcies, so I know I can help you.
Answer Applies to: Colorado
Replied: 7/16/2015
A Fresh Start
A Fresh Start | Dorothy G Bunce
Sure, if you qualify. You will need to show that your necessary living expenses leave you with an insufficient amount of money each month to pay even one fourth of your debt within a 5 year period. This is referred to as the good faith test.
Answer Applies to: Nevada
Replied: 7/16/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    It might not be impossible, but it's hard. About ten years ago Congress added to the bankruptcy papers which must be filed a 'Means Test,' which is intended to be an objective measure of what households of different sizes in different States should be spending. And there is a bit of room for individual adjustment. But generally speaking, a truthfully completed Means Test is very likely to show that you have disposable income above the limit for Ch. 7, and if you want the benefits of bankruptcy you will have to file under Ch. 13 Consult an experienced bankruptcy lawyer. Good Luck.
    Answer Applies to: Wisconsin
    Replied: 7/16/2015
    Novakov & Associates, PLLC
    Novakov & Associates, PLLC | LINDA S. NOVAKOV
    If you pass the means test for your area - you can file a chapter 7. If you meet the median income for people in your area - then you will be able to file. Consult an attorney to determine if you qualify.
    Answer Applies to: Kentucky
    Replied: 7/16/2015
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Sometimes I am shocked on who qualifies. Your secured debt helps quite a bit. You need to see a qualified lawyer to make the calculation. If you don't qualify, often the ch13 payment is much less than current debt payments. (And you dump the compound interest). You may find a lawyer at Nacba.org.
    Answer Applies to: California
    Replied: 7/16/2015
    Ronald K. Nims LLC | Ronald K. Nims
    No, Chapter 7 is limited to people with below average incomes. You could file a Chapter 13 or a Chapter 11.
    Answer Applies to: Ohio
    Replied: 7/16/2015
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Yes. It all depends on the type of debts you have and, of course, just how high the income is both in the 6 months prior to filing as well as ongoing. Your expenses factor into the analysis too. The only way to find out is to have a consultation with an experienced bankruptcy attorney in your state.
    Answer Applies to: California
    Replied: 7/16/2015
    Tokarska Law Center
    Tokarska Law Center | Kathryn U. Tokarska
    If you can pass the Means Test or if you are exempted from the Means Test or have an exception to not passing the Means Test you may be able to get a discharge in Chapter 7. Filing a case is one thing, successfully completing the case and getting a discharge is another. There are unfortunately people out there who file on their own without legal advice and as the saying go they have to lay in the bed they made. If you don't qualify for chapter 7 discharge, then take a look at chapter 13, which is a restructure/repayment type of bankruptcy, sometimes depending on circumstances this is still the best option. Compare and contrast the potential payments under C13 with debt settlement or credit consolidation. So you should understand how each works and what you will accomplish. If you have no income/no assets I'd say okay if you try and do this by yourself but otherwise go see a local attorney. They will go over the details to help you decide what to do.
    Answer Applies to: California
    Replied: 7/16/2015
    Garner Law Office
    Garner Law Office | Daniel Garner
    If you are over the median income for your household size, you have to do the "long form" of the means test which evaluates your monthly disposable income against statistical average expenses. Housing and transportation costs, medical expenses, priority debts like taxes and domestic support, and various other expenses go into the calculation, and it is possible that your allowable expenses would bring your disposable income to a small enough number that you would still qualify for chapter 7. But there have been cases dismissed for "abuse" because the debtors were living well beyond their means. Typically, if the U.S. Trustee challenges your attempt to file chapter 7, they will give you a choice of dismissing your case or converting it to chapter 13 and paying as much as you can on your debts for 5 years. If you complete a chapter 13 plan, your remaining debts are discharged.
    Answer Applies to: Oregon
    Replied: 7/16/2015
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    There is no yes or no answer to your question. There are several factors which must be considered in determining whether an individual with income above the means testing limitation can file a Chapter 7, including the State where you live, whether you are married or not, how many dependents you have, your secured debt and how much longer you have to pay it the secured debt, to name a few. Since an individual's ability to file a Chapter 7 is fact specific to their individual circumstances, it would be best to consult with an experienced bankruptcy attorney who can assist in making that determination.
    Answer Applies to: California
    Replied: 7/16/2015
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    Possibly you need to consult with an attorney.
    Answer Applies to: Florida
    Replied: 7/16/2015
    Danville Law Group | Scott Jordan
    It is possible but depends on your reasonable living expenses. You will need to calculate your Chapter 7 chances by conducting a Means Test analysis. If you do not know that it, I suggest you contact a local bankruptcy attorney for assistance.
    Answer Applies to: California
    Replied: 7/16/2015
    Mauritz Van Niekerk, Attorneys at Law
    Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
    No there are limitations on how much you can make to file ch 7.
    Answer Applies to: New York
    Replied: 7/16/2015
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