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How do I qualify for a Chapter 7 bankruptcy? – Ask a St. Louis Chapter 7 Bankruptcy Lawyer

As with so many things surrounding bankruptcy law, this question is often misunderstood. Many people come to my office and say “I make $60,000 a year, so I don’t qualify for a Chapter 7.” They think this because, for a single person with no dependents, they are over what we call the “median” income. However, the median income analysis is only the beginning, and not even close to the end of the analysis. You should call a Chapter 7 Bankruptcy Lawyer today to discuss! 314-827-4027

If someone makes $60,000 and has no dependents, maybe he or she can afford to make some payments to creditors and therefore must do a Chapter 13 Bankruptcy. However, what if this person has a $2000 a month mortgage payment? Does $5000 per month sounds like a lot of money now? No, and the bankruptcy law takes this into account and does not force all people into a Chapter 13 just because of their gross income. A Chapter 7 Bankruptcy takes into account your fixed, monthly expenses, as well as your income. A good Chapter 7 Bankruptcy Lawyer should be able to help you create a budget that accurately reflects your income and expenses.

The general rule for a bankruptcy is that, excluding unsecured debts, if you bring home more than you spend, you probably have to do a Chapter 13. However, if your regular monthly living expenses equal or exceed your income, you can do a Chapter 7 Bankruptcy.

You can go to the U.S. Trustee’s website at http://www.justice.gov/ust/eo/bapcpa/meanstesting.htm. Use the information there to determine if you are above or below the “median” income. The median income is not a meaningless number, and does create some presumptions. However, being above the median income does NOT mean you MUST do a Chapter 13 Bankruptcy. You should discuss this with a Chapter 7 Bankruptcy Lawyer.

Sean C. Paul
Chapter 7 Bankruptcy Lawyer

Sean C. Paul is a Chapter 7 Bankruptcy Lawyer licensed to practice law in the State of Missouri.  He practices in the Federal Courts of the Eastern District of Missouri, the Southern District of Illinois, and the Central District of Illinois. He worked for one of the largest firms in the country as a bankruptcy attorney before starting this firm. Sean C. Paul will give you the individual attention you deserve.  He understands the importance of your financial decisions.  He wants to help you make the best choice, whether it’s a Chapter 7 Bankruptcy, a Chapter 13 Bankruptcy, or something else entirely.

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