Some people think that filing for bankruptcy is something that people can only do once they are entirely out of money and drowning in debt. This is not the case though. A bankruptcy is a chance to reorganize your finances, and that means that it may be open to you even if you think that it is not an option. Filing for bankruptcy can even be a smart option for some people who have a relatively high income. To figure out whether this is the right choice for you, you can talk to a Rockland County Chapter 13 bankruptcy lawyer from our firm.
Which Type of Bankruptcy Can I File for If I Have a High Income?
Bankruptcy is often an option for someone with a high income, but sometimes not every type of bankruptcy is available to them. Chapter 7 bankruptcy allows you to liquidate assets and completely discharge any qualifying debt. This is obviously appealing to someone who needs to file for bankruptcy, but someone with a high income may not be able to file for Chapter 7 bankruptcy.
This is because this chapter has a means test and requires your income to be less than the median family income of your state. If your income is too high, you have to look at your expenses. If those are high enough, then you may be able to qualify for Chapter 7 bankruptcy. There is a bit of math involved, but our lawyers can help you figure out if this is an option for you.
If you cannot qualify for Chapter 7 bankruptcy due to your high income, you can look into Chapter 13 bankruptcy. There are no income limitations here. Not all of your eligible debt will be immediately expunged though. Instead, you will develop a payment plan based on your income that would get creditors off of your back. Once you make these payments, the rest of the eligible debt is wiped away.
What Are the Advantages of Filing for Bankruptcy?
Filing for bankruptcy can seem like a bad thing, but the process really just gives you the chance to get a fresh start. Completing this process means that you will:
- Have less stress about money or debt
- Not have to hear from creditors constantly
- Get the chance to rebuild your credit
- Be able to establish better spending and saving habits
So do not write off the bankruptcy option, even if you have a high income. This might just be the best way for you to deal with your current financial situation.
Contact an Experienced Bankruptcy Attorney
If you have any more questions about bankruptcy, contact the Lauterbach Law Firm. We can schedule a consultation and take a closer look at your financial situation. Then we can try to find the solution that works best for you.
