Tuesday, May 1, 2012

Income cap for filing Chapter 7 bankruptcy has dropped

I am a bankruptcy attorney in Phoenix ($995/Chapter 7) and one of the changes made to federal bankruptcy law in 2005 was to put in income eligibility caps. If you make more than the median income in your state, you cannot file for bankruptcy. There are some exceptions however, if you have children or certain types of expenses you may still qualify. The income cap changes year to year depending on your state's median income. Until today, the median income in Arizona was about $44,000. It has now decreased, obviously due to the recession, and is at $42,691. For a married couple, it is $55,479. It jumps higher if you have children; a family with four children has an income cap of $68,787 in order to be eligible to file.

Set up a consultation with us and we can determine whether or not you can fit into a Chapter 7. Child support alimony, taxes, insurance and health costs can all count as expenses that lower your income. If your income is still too high for a Chapter 7, you may still be eligible to file Chapter 13 bankruptcy. Although it does not discharge all of your unsecured debt, it will reorganize it and reduce it, making it into realistic payments that you can afford over the next 3-5 years. 

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. AlexanderBankruptcyLawFirm.com

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