Are There Income Limits to File Bankruptcy?

There are income limits for a chapter 7 case, but if you're above the limit that doesn't mean you can't file. What it does mean is that you must be able to pass the means test to qualify for a chapter 7 discharge.

If you are leaning towards a chapter 13, then you really don't need to worry about qualifying based on your income. You do, however, need to consider your income and expenses to find out how much the payment plan will entail paying each month.

Who Can File for Bankruptcy?

It's a simple question and actually has a simple answer. Generally, anyone can file for bankruptcy. Whether it would be advantageous for you to do so and if you are eligible for a certain chapter of bankruptcy requires that you evaluate your debts, your income and your equity.

Step One: Your Debts
First, you are going to want to find out what bankruptcy can do for you, and weigh that against the effect it will have on your credit. To do so you need to understand which of your debts can be discharged in bankruptcy.

I Need to File Chapter 7 But I Make Too Much Money

The changes to Bankruptcy Laws in 2005 did make it more difficult for some people to file for a chapter 7 bankruptcy due to the new means test requirement. This law imposes on debtors an eligibility rule designed to keep those with the ability to repay their debt from getting a chapter 7 discharge and "fresh start".

However, many people are under the impression that simply making a lot of money is enough to keep them from getting a chapter 7 discharge. This is not necessarily the case, and it's actually a little more complicated than that.