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.

Should I Reaffirm My Car Loan Debt in a Chapter 7?

We all need transportation to live and work normally. If you're thinking about chapter 7 or currently in a chapter 7, you will need to decide what to do with your car.

While you can almost always keep it in a typical chapter 7 case, there are cases where letting it go and getting the debt against it discharged may be the smarter move.

Can I File a Chapter 13 Even if I Qualify for Chapter 7?

There are certain cases where you might want to file a chapter 13 bankruptcy rather than the more common chapter 7. Usually this is because you have valuable assets that might be at risk of liquidation in a chapter 7. So this begs the question; Can you choose?

Usually, the answer is yes, but it depends on whether you have the requisite income to make payments to the chapter 13 plan, and your plan must also ensure that your creditors get at least as much as they would get in a chapter 7.

3 Things You Didn't Know About Bankruptcy

1. Bankruptcy Can Get a Repossessed Car Back
There is a law in bankruptcy that requires all the creditors involved to be treated equally. One thing that happens in a case is the trustee goes back 90 days to see what creditors have received payment. If one creditor has received payment that is substantial, the trustee can get it back and have it included in the bankruptcy estate.

Should You Always Go for Chapter 7 over Other Bankruptcies?

Generally, chapter 7 bankruptcy is going to be preferable for most people in financial distress. Chapter 7 is faster, cheaper and less complicated than chapter 13 or other types of bankruptcy. It also doesn't require any repayment of your debts, like a chapter 13 or chapter 11 business bankruptcy.

However, not everyone can qualify for a "straight" chapter 7 bankruptcy. There also may be times when your property could be at risk in a chapter 7, meaning a chapter 13 would be preferable, but this is not usually the case if you've become insolvent.

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.