Saturday, February 25, 2012

How low does your income need to be in order to file for bankruptcy?

I am a bankruptcy attorney in Phoenix, Arizona ($995/Chapter 7) and one thing clients worry about is whether their income is so high they will not be eligible to file for Chapter 7 bankruptcy. The 2005 changes to bankruptcy laws put in income caps. The truth is, the 2005 changes have made hardly a dent in the number of people filing for bankruptcy. The reason is because there are many exceptions allowed to the income caps. Generally, the law states that if you make more money than the average income for your state, you cannot file Chapter 7. In Arizona, that cap is currently at $41,385. For a couple, it is $53,781. You can include all kinds of things as expenses however in order to get around this. If you and your spouse have four kids, that number bumps up to $76,267. If you have significant medical expenses, they are included. Deductions from your paycheck like payroll taxes will also lower your perceived income. Payments made for alimony, child support, or other kinds of required payments count.

Even if you don't qualify for Chapter 7, you can still file for Chapter 13 bankruptcy, where there are no income caps. The reality is in today's dismal economy, even families making close to six figure incomes are having difficulties. Large amounts of money must go to pay for things like huge credit card bills, court-ordered child support, and unexpected medical bills. At the Alexander Bankruptcy Law Firm, we understand that and for that reason offer very low prices at this time.

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. 602-910-6812. Conveniently located in Central Phoenix along the Camelback corridor.

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