Income Limits and Chapter 7 Bankruptcy

When a person is facing a serious financial crisis and feels that bills, credit, and loan repayment have spun out of control, he or she may decide that filing for bankruptcy is a the best solution. Individuals who make more than the median income for their respective states may be unable to file for Chapter 7 bankruptcy, and may be forced to pursue Chapter 13 bankruptcy to clear the record.

It is not uncommon for people facing a dire financial situation to consider bankruptcy as a way to discharge their debts and start over with a clean slate. If you would like to know more about bankruptcy and your legal options, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346.

Chapter 7 Bankruptcy Limits

When considering an individual's application for Chapter 7 bankruptcy, the court often looks at:

• The debtor's ability to repay the debt. This takes into account expenses and other financial responsibilities, and then examines what is left over that could be applied toward the outstanding debt.
• The applicant's income is also examined and compared to the median income of the state in which he or she resides. If the person makes more than the median income in the state, he or she may be denied Chapter 7 bankruptcy.

Contact a Boston Bankruptcy Attorney

If you or someone you love is facing serious financial difficulties, contact the Boston bankruptcy attorneys of Joshua Spirn & Associates at 1-800-975-5346.