It is a common bankruptcy myth that people with a high income cannot qualify for bankruptcy protection.
Have you been told that you make too much money to file for bankruptcy? If so, we highly encourage you to consult with an experienced bankruptcy attorney.
First, many people who file for bankruptcy earn above the median income. Second, many bankruptcy attorneys do not charge a fee for consultations. If you live in the Savannah, GA area, contact us to schedule a free consultation. Together we will explore whether or not you qualify for bankruptcy and which chapter will best serve your debt relief needs.
Determining Whether Or Not You Qualify for Bankruptcy Protection
If your income is above the median income for your state and household size, then you must run the means test to determine whether or not you qualify for Chapter 7 bankruptcy. Having a high income does not mean you cannot qualify for bankruptcy, it simply means that you have to run the means test to show that you qualify.
The fact is many people who file for Chapter 7 bankruptcy earn above the median income.
Bankruptcy Means Test Explained
The means test is a review of your income minus expenses. If your net income falls below the state median for your household size, then you automatically qualify for Chapter 7 bankruptcy. If your net income is above the state median for your household size, then you must run the means test to determine whether or not you qualify for Chapter 7 bankruptcy.
As of April 1, 2017, the median household income in Georgia is:
- Household of One: $43,274
- Household of Two: $56,301
- Household of Three: $62,483
- Household of Four: $73,202
- Households of more than four: add $8,400 for each individual in excess of four.
Certainly the means test makes qualifying for Chapter 7 bankruptcy more difficult; however, an experienced bankruptcy attorney can help you navigate the means test and qualify for the debt relief you deserve.
If You Truly Do Not Qualify for Chapter 7 Bankruptcy
Many people seeking bankruptcy relief would be best served by filing for Chapter 7 bankruptcy, as it erases most debts and does not require a repayment plan. However, people who do not qualify for Chapter 7 may still be able to qualify for Chapter 13 bankruptcy. Learn about the differences in our article The Differences Between Chapter 7 and Chapter 13 Bankruptcy.
With the help of the experienced attorneys at The Law Office of Barbara B. Braziel, even people who earn well above the median income for our state can qualify for Chapter 7 bankruptcy. Contact us for a free consultation and analysis of your income.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.