Bankruptcy - Do I Qualify?
AMOUNT OF DEBT
There is no minimum amount of debt to file a Chapter 7 or Chapter 13 bankruptcy, and for a Chapter 7 bankruptcy, there is no maximum amount of debt. For a Chapter 13 bankruptcy, your total debt can’t exceed $1,081,400.00.
INCOME FOR CHAPTER 13
You must have some type of income from a legitimate source (but it doesn’t have to be from employment). For example, you can have income from wages, self employment, Social Security, pension or retirement, state assistance, child support and alimony, etc.
INCOME FOR CHAPTER 7
No income is required to file a Chapter 7 bankruptcy.
MAXIMUM INCOME TO FILE A CHAPTER 7 BANKRUPTCY
The maximum income is based on your family size and it is adjusted two times each year. For a family size of 1, the maximum income is approximately $48,000, and it goes up by approximately $5,500 for each additional family member. You can find the exact income here. If your income exceeds the maximum income, you may still be able to file a Chapter 7 bankruptcy if you have special circumstances. For example, if you have a large amount of debt related to a business or investments, or if you have a high child support or alimony payment.
THINKING ABOUT FILING BANKRUPTCY?
There are many different reasons for needing to file a bankruptcy. While each filing may be for a different reason, there is a similar theme that comes with any bankruptcy filing. The individual is struggling under the burden of debt. The debt is not allowing them to do what they want to do or what they need to do to move forward in their life. If you are considering filing a Chapter 7 or Chapter 13 bankruptcy then the below information can be helpful when preparing for the bankruptcy. These are the documents needed when filing a bankruptcy.
- Last 6 months of pay stubs for all jobs held during that time period. If you do not receive pay stubs then you will need to provide proof of your source of income (i.e. self employed - profit and loss, social security statements.
- Taxes - Within approximately 60 days after filing a Chapter 13 or Chapter 7 bankruptcy, you will need to file tax returns for any years you are missing. You will need to provide our office with the most recent taxes filed , including any missing years that were recently filed.
- Current bank statement for all bank accounts.
- Proof of any child support received.
- Proof of charitable contributions. (Chapter 13 only)