What is the dollar limit you can make and still file for bankruptcy? 14 Answers as of December 16, 2010

What is the dollar limit you can make and still file for bankruptcy? We want to file for the one where it takes away all your debts. How do we go about this?

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Stuart Jon Bierman  Attorney at Law
Stuart Jon Bierman Attorney at Law | Stuart Jon Bierman
You should call a lawyer to discuss this since there are a few variables involved, including the number of children or other dependents that are being supported.
Answer Applies to: New Jersey
Replied: 12/16/2010
Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
There are several different types of bankruptcy proceedings. The most common 3 types are Chapter 7, Chapter 11 and Chapter 13. The type of bankruptcy that you refer to in which all dischargeable debts are discharged (wiped out) is called Chapter 7. There is no debt limit in a Chapter. I have personally filed Chapter 7 petitions for many individuals with millions of dollars in debt and succeeded in discharging all of their unsecured debts.
Answer Applies to: California
Replied: 12/16/2010
Steven D. Keist, Attorney at Law
Steven D. Keist, Attorney at Law | Steven D. Keist
It is dependent upon if you are married and how many are in your household. You can check the median income on the internet for Arizona and it will give you the median income level.
Answer Applies to: Arizona
Replied: 12/16/2010
Ursula G. Barrios Law
Ursula G. Barrios Law | Guillermo Machado
You start by consulting a qualified attorney to determine if you can pass a means test and the "totality of circumstances" test. The dollar limits are set by county and household size. In CA, they range from approximately $50K for a family of 1 to approx.$100K for a family of 7.
Answer Applies to: California
Replied: 12/16/2010
DiManna Law Office, LLC.
DiManna Law Office, LLC. | Dawn DiManna
The dollar limit depends on your family size, and then if the abuse presumption still arises based on your income and family size, you have to complete the means test. You should consult a bankruptcy attorney for your specifics.
Answer Applies to: New Hampshire
Replied: 12/16/2010
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    It sounds like you are inquiring about a chapter 7 bankruptcy, which liquidates (eliminates) your debt. In order to determine if you qualify, you will need to take a means test. The income limits are based upon the median income for each state and the amounts go up when additional parties are in the home. Please feel free to contact me and I can run a means test for you to determine if you qualify. Please note that if you are over the median income, you may still qualify for a chapter 7 as the court has discretion to allow them to proceed.
    Answer Applies to: California
    Replied: 12/16/2010
    Mankus & Marchan, LTD
    Mankus & Marchan, LTD | Tony Mankus
    It sounds like you wish to file Chapter 7 (liquidation) bankruptcy. As far as your earnings, they would have to fall within the "means test," which depends on many factors, including where you live, how many dependents you have, what secured debt payments you make, etc. A good bankruptcy attorney would have to help you determine whether you fall within the means test.
    Answer Applies to: Illinois
    Replied: 12/16/2010
    Law Office of Raymond J. Dague, PLLC
    Law Office of Raymond J. Dague, PLLC | Raymond J. Dague
    There really is no dollar limit for a chapter 13. A really rich guy who earns a lot can file a 13 if the debts are substantial. There are limits for chapter 7 bankruptcies, but they vary depending on where you live and how many dependents you have.
    Answer Applies to: New York
    Replied: 12/16/2010
    The Law Office of Brian Nomi
    The Law Office of Brian Nomi | Brian H. Nomi
    To file for a Chapter 7 bankruptcy there is no specific dollar limit. Your income is a key factor in the case, especially in the "Means Test." The higher your income, the harder it may be to do a Chapter 7. If your income is high, it's important to have a skillful attorney to navigate you through the bankruptcy.
    Answer Applies to: California
    Replied: 12/15/2010
    Law Offices of Lady Justice
    Law Offices of Lady Justice | Mona Patel
    Hi there!

    Well we have to see how much your expenses are in total and then we can evaluate how much your income can be in order to file a Chapter 7 bankruptcy. This is the bankruptcy that gets rid of all your unsecured debt such as credit cards.
    Answer Applies to: California
    Replied: 12/15/2010
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    That depends on what state you are in and depends on what deductions you are entitled to. You should see a lawyer in your area.
    Answer Applies to: California
    Replied: 12/15/2010
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    That is an impossible question to answer quickly. There are several different tests used to determine eligibility to file Chapter 7 (which is the straight liquidation chapter where you don't make any payments). One test is the congress-created "means test" which uses
    gross income received for the 6 calendar months prior to filing your case and compares that to the median income for a given household size for your area. If you are over the median income, then the "means test" is done subtracting certain allowed IRS standard expenses. Once that is done if you are above or below a certain level there may be a "presumption of abuse" if a Chapter 7 case is filed, and your attorney needs to decide whether that presumption can be overcome.

    Another test that is used is your actual current income and necessary living expenses. If this results in a monthly surplus, then Chapter 7 may also be challenged depending on how big the surplus is.

    In short, you need to consult with an experienced bankruptcy attorney to determine your eligibility.
    Answer Applies to: California
    Replied: 12/15/2010
    The Shakoori Law Group
    The Shakoori Law Group | Rachelle Shakoori
    That is impossible to answer because it depends on various factors. Example, your household size, your secured debts, etc. An attorney can probably evaluate you in a free consultation.
    Answer Applies to: California
    Replied: 12/15/2010
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