Can I File Bankruptcy If I Make Too Much Money

Spectacular!

I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
--Donna
Highly Recommended!

I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
--David
Very Professional.

Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
--Anonymous
Non-judgmental.

You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
--Anonymous
More Than Expected!

I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
--Joanna
Very Impressed!

I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.
--Danielle

attorney, attorneys, lawyer, lawyers, California, CA, Bankruptcy, wage, garnishment, stockton, citrus heights, roseville, sacramento Have you delayed filing bankruptcy because you fear that you just make too much money? The truth is that many people just like you mistakenly believe that they earn too much money to file bankruptcy when in reality their income along with their debts make them a prime candidate for Chapter 7 or Chapter 13 bankruptcy.

Take The Test

The first step to determining if you really do make too much money to file bankruptcy (which isn't likely) is to calculate your income. If you make less than the median income in California then you should be able to file Chapter 7 bankruptcy. If you make more than the median income in California, then you need to take the means test. Let's take a look at the California median income:

1 Member Household – $50,579
2 Member Household – $66,537
3 Member Household – $70,816
4 Member Household – $81,837

If you're required to take the means test, it will calculate your average monthly household income for the six months preceding your bankruptcy filing and determine if you earn enough money to repay your creditors in Chapter 13 bankruptcy. If your means test results show that you don't earn enough money to repay creditors, then you can file Chapter 7 bankruptcy. But if the means test determines that you have enough disposable income to repay creditors, then you will need to file Chapter 13 bankruptcy.

But income alone isn't enough to determine if you make too much money for Chapter 7 bankruptcy. The means test will look at your necessary and allowable expenses and household size when determining which bankruptcy chapter is right for your situation.

Your Household

Household size is critical to determining how your income will impact your bankruptcy case. Larger households have a higher median income threshold but may also earn more money. For example, a four person household with one working adult in it could easily qualify for Chapter 7 bankruptcy while another four person household with two working adults may earn too much money for Chapter 7 bankruptcy. Also, household size determination can get a bit tricky. Household doesn't just mean adults and children who are direct relatives—it includes anyone living in your home that you are supporting financially.

For help determining how your income and household size will impact your bankruptcy case, contact us today.

Categorized in: Bankruptcy, Filing Bankruptcy