Wednesday, December 7, 2011

Filing bankruptcy in Arizona: Is my income too high?

I am a bankruptcy attorney in Arizona ($995/Chapter 7) and clients are frequently worried they make too much money to file bankruptcy. The 2005 changes to federal bankruptcy laws put in place an income cap eligibility requirement for filing Chapter 7 (you can still file Chapter 13 with a higher income).

Generally, you cannot file Chapter 7 if you make above the median income for your state. In Arizona, the median income is $42,603 per person, and for a spouse it is a total of $55,404 for both.

However, that is not an absolute bar. If you have legitimate expenses that reduce your income, you may be able to fit under the cap. Legitimate expenses include things like child support or alimony, mandatory retirement taken out of your paycheck, healthcare expenses, insurance, educational materials, union dues, as well as payroll taxes.

The Alexander Bankruptcy Law Firm provides low low cost Chapter 7 and 13 personal bankruptcies. $995 Chapter 7 or $2500 Chapter 13 bankruptcies plus court filing fee. Free consultation with a compassionate attorney who will handle your case personally. Call 24/7, available to meet with you around your schedule. 602-326-9116. Conveniently located in Central Phoenix along the Camelback corridor.

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