What is the chapter 7 bankruptcy maximum income? 23 Answers as of June 24, 2011

I have a large salary but still can't afford my lifestyle. What type of bankruptcy do I need to file?

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Jackson White, PC
Jackson White, PC | Spencer Hale
The maximum income depends on your household size and the area you live in. You should consult a local attorney.
Answer Applies to: Arizona
Replied: 6/24/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
There is no way to answer that question with a simple answer. There are different tests required to determine eligibility for Chapter 7. One looks at all income received in the 6 calendar months prior to filing, using IRS allowed expense and other standards as an offset. This is known as the "means test". The other is the current income and expense budget looking at actual necessary living expenses. The only way to determine which chapter you are eligible for is to have a comprehensive consultation with a bankruptcy attorney in your area.
Answer Applies to: California
Replied: 6/24/2011
Breckenridge and Walton
Breckenridge and Walton | Alan D. Walton
There is no maximum, but you need to show that all of your expenses are reasonable and necessary. The Hummer and Harley are not, nor is the second home or motor home. Your lifestyle is not relevant, it is what is reasonable and necessary.
Answer Applies to: Michigan
Replied: 6/23/2011
Law Office of Asaph Abrams
Law Office of Asaph Abrams | Asaph Abrams
In a sense, the maximum income is what's required to sustain a reasonable living standard, whereas "lifestyle" has the connotation of something beyond that. That said, the Code is written in a fashion whereby persons with very-high income, but also very-high secured-debt payments can more readily obtain chapter-7 debt relief, read: 0 payment on dischargeable debt.
Answer Applies to: California
Replied: 6/23/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
The Means Test median income is different per state/county. You should consult a local attorney to see if you qualify.
Answer Applies to: Washington
Replied: 6/23/2011
    Daniel Hoarfrost, Attorney at Law
    Daniel Hoarfrost, Attorney at Law | Daniel Hoarfrost
    If your income disqualifies you for a Ch 7, then your option is to file a Ch 13 which is a payment plan based on your income and allowable living expenses per IRS guidelines.
    Answer Applies to: Oregon
    Replied: 6/23/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    Depends on your state and the number of people in your household. You'll need to have your lawyer evaluate by running income and expense schedules and a Means Test calculation.
    Answer Applies to: Virginia
    Replied: 6/23/2011
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    If you have a large income you will likely need to consider a Chapter 13 unless there are special circumstances. It is expected that if you have a large income that you will be able to make some payment per month to your creditors and that will become your Chapter 13 Plan.
    Answer Applies to: New Hampshire
    Replied: 6/23/2011
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
    There is no realistic limit, but in your case, you should be forced into a 13, to try and pay off many bills, and lower your lifestyle. that is how they deal with the high salaries.
    Answer Applies to: California
    Replied: 6/23/2011
    Theodore N. Stapleton, PC
    Theodore N. Stapleton, PC | Theodore N. Stapleton
    Depends upon your expenses and the type of debts you have. If your debts are primarily business debts then you are exempt from the means test income ceiling. Please call to discuss.
    Answer Applies to: Georgia
    Replied: 6/23/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    That is not a simple question. First, the income limits vary from state to state, and county to county. Second, there are quite a few deductions and legal ways to get someone who is over the limit under the limit. You need see an experienced bankruptcy lawyer in your area.
    Answer Applies to: California
    Replied: 6/23/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    Chapter 7 eligibility with regard to income is determine by a number of things, but primarily what rules the day is how much gross income you bring in for your household size. The IRS publishes a table of median household income thresholds based on where you live and if you exceed this gross amount, a presumption of abuse arises in a Chapter 7 case. There is no limit on income if the bulk of the debt you have is non-consumer in nature.
    Answer Applies to: Indiana
    Replied: 6/22/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    For most people a Chapter 7 is better. The 2005 Bankruptcy law was designed to force people with "large salary" into chapter 13a five year payment plan. With careful detail, your bankruptcy lawyer may find away to put you into a Chapter 7, again, if that's better for you.
    Answer Applies to: Virginia
    Replied: 6/22/2011
    Cartwright Law Firm
    Cartwright Law Firm | Andrea Cartwight
    Thank you for your question. There is no maximum income to qualify for Chapter 7 Bankruptcy. It going to based upon your current income and expenses. When it's determine whether you can qualify for a Chapter 7 or 13 your expenses must be reasonable and necessary (i.e. mortgage payments, car payments, utilities and car insurance,food, clothing, etc). If you make too much income to qualify for a chapter 7, then you may qualify for a Chapter 13, which is a form of reorganization. A Chapter 13 bankruptcy allows you to pay back your creditors over a period of time from 36-60 months. A Chapter 13 bankruptcy stops interest from accruing and sets-up a repayment plan that you can afford taking into account your household income and expenses. If you should have any further questions or concerns concerning whether you qualify for bankruptcy, please feel free to contact my office to schedule a Free consultation. Our firm also offers lows fees and EZ Plan Plans for a Chapter 7 starting at $499.00 plus filing fee. I look forward to hearing from you.
    Answer Applies to: Michigan
    Replied: 6/22/2011
    Sariol Legal Center
    Sariol Legal Center | Frank R. Sariol
    There is no specific amount that is required for a chapter 7. There is a "Means Test" that is performed on each individual or couple and is very personal to each family. If you do not pass the Means Test, then you cannot file Chapter 7. In that case you would need to file either a chapter 13 or a Chapter 11. Chapter 13 also has requirements to be met in order to be able to file under that chapter. Thank you.
    Answer Applies to: California
    Replied: 6/22/2011
    Law Offices of Alexzander C. J. Adams, P.C.
    Law Offices of Alexzander C. J. Adams, P.C. | Alexzander Adams
    It depends. Even if you are above the means test, it is possible to file a chapter 7. You need to meet with an attorney to determine your options.
    Answer Applies to: Oregon
    Replied: 6/22/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    Eligibility for chapter 7 depends on qualifying under the means test. If you don't qualify for chapter 7 you may want to consider filing chapter 13.
    Answer Applies to: California
    Replied: 6/22/2011
    Evan M. Altman Attorney at Law
    Evan M. Altman Attorney at Law | Evan M. Altman
    Without knowing the whole situation, probably a ch 13 repayment plan
    Answer Applies to: Georgia
    Replied: 6/22/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    The maximum income depends on family size and what state you are in. Additionally there are a myriad of adjustments for certain expenses. You need to see a lawyer who will have a computer program to analyze the numbers.
    Answer Applies to: Georgia
    Replied: 6/22/2011
    Greifendorff Law Offices, PC
    Greifendorff Law Offices, PC | Christine Wilton
    Your income must be below the median income for households of your size. So, this is a 2-step process and depends upon how many people live in your house. Then, we look at your gross income averaged over the last 6 months. Just search the internet for a means test calculator for a general idea.
    Answer Applies to: California
    Replied: 6/22/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    There is no "one size fits all" dollar amount. That depends on the state where you live, the number of dependents you have, the amount of secured debt you have, the total amount of unsecured debt you have, if you owe taxes in the past three years, whether you pay child support or spousal support, if you need to strip off a mortgage lien, if you are behind on car or house payments are all factors to determine what kind of bankruptcy is either available or the best for you.
    Answer Applies to: California
    Replied: 6/22/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    All based on household size. For more info you need to see an attorney. We offer a free consultation.
    Answer Applies to: California
    Replied: 6/22/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    Whether you qualify for a chapter 7 bankruptcy will depend on what your income is compared to the median income of your state and family size. If you are below the median income you may file a chapter 7 bankruptcy, if you are above you will most likely have to file a chapter 13 bankruptcy, barring qualifying through the means test. Speak to an attorney in your jurisdiction for more details.
    Answer Applies to: Washington
    Replied: 6/22/2011
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