Results 1 to 7 of 7
  1. #1
    Join Date
    Jun 2008
    Posts
    6

    Default Chapter 13 Vs. Chapter7

    My question involves bankruptcy in the state of: California

    I am curious if I can file under Chapter 7.

    I am married with 2 children. Mine is the primary income. I make approximately $80K before bonus, car allowance, and gas reimbursement: $110K including those. I have approximately $85K in credit card debt (all debt over 8 months old, but still current on minimum payments). I have $150K in negative equity on my house, which I plan to foreclose on. I just had my car repossessed (I will owe approximately $15K after it is auctioned).

    I am less concerned with my credit standing as I am with getting a fresh start.

    Thank you in advance.

  2. #2
    Join Date
    Jun 2008
    Posts
    6

    Default Can I File Under Chapter 7

    My question involves bankruptcy in the state of: California

    I am curious if I can file under Chapter 7. I am married with 2 children. Mine is the primary income. I make approximately $80K before bonus, car allowance, and gas reimbursement: $110K including those. I have approximately $85K in credit card debt (over 8 months old, but still current on minimum payments). I have $150K in negative equity on my house, which I plan to foreclose on. And just had my car repossessed (I will owe approximately $15K after it is auctioned).

  3. #3
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Can I File Under Chapter 7

    With your income, you are not going to qualify for Chapter 7.

  4. #4
    Join Date
    Jun 2008
    Posts
    6

    Default Re: Can I File Under Chapter 7

    Quote Quoting aaron
    View Post
    With your income, you are not going to qualify for Chapter 7.
    Do you happen to know the income threshold?

  5. #5
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Can I File Under Chapter 7

    You would have to make less than the median family income for a family of four (the # of people in your family) in your state of California for Chapter 7 which is $68,310. However; if a person can pass the Means Test, they can still file a Chapter 7 even if their income is over the median. This is a fairly complicated set of calculations that will identify if you can pay a significant portion of your bills & should be required to do so instead of getting rid of them in a Chapter 7. If you happen to pass the means test, you can file Chapter 7. If you flunk, you would have to file a Chapter 13 repayment plan. You would probably need a bankruptcy attorney to determine if you might qualify for Chapter 7 (help you with the means test) - it's very possible you won't qualify with your income & based on your post but I can't make that as a definite statement.

  6. #6
    Join Date
    Jun 2008
    Posts
    6

    Default Re: Can I File Under Chapter 7

    Quote Quoting Betty3
    View Post
    You would have to make less than the median family income for a family of four (the # of people in your family) in your state of California for Chapter 7 which is $68,310. However; if a person can pass the Means Test, they can still file a Chapter 7 even if their income is over the median. This is a fairly complicated set of calculations that will identify if you can pay a significant portion of your bills & should be required to do so instead of getting rid of them in a Chapter 7. If you happen to pass the means test, you can file Chapter 7. If you flunk, you would have to file a Chapter 13 repayment plan. You would probably need a bankruptcy attorney to determine if you might qualify for Chapter 7 (help you with the means test) - it's very possible you won't qualify with your income & based on your post but I can't make that as a definite statement.
    Thank you for the information. Would the situation be different if both my wife (although she has little, or no, income) and I filed?

  7. #7
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Can I File Under Chapter 7

    I don't know how little of an income she has (if any) & if she has any debts of her own (other than the debts you listed as yours) & also since California is a community property state this can complicate things. You really need a bankruptcy specialist/lawyer. In community property states *most* income/assets/debts are normally combined as belonging to both. A bk lawyer will be able to answer all your questions.

    1. Sponsored Links
       

Similar Threads

  1. Chapter 13: Trustee Dismissing Chapter 13 Bankruptcy, Can We File Chapter 7
    By craigandnay in forum Bankruptcy Law
    Replies: 2
    Last Post: 06-14-2010, 06:23 AM
  2. Chapter 13: Can I File Chapter 13 After Discharge in Chapter 7
    By ar2000 in forum Bankruptcy Law
    Replies: 1
    Last Post: 07-08-2009, 06:20 PM
  3. Chapter 7: Can I File Chapter 7
    By 2lil2late in forum Bankruptcy Law
    Replies: 5
    Last Post: 03-13-2009, 05:42 PM
  4. Bankruptcy Issues: Which To File - Chapter 13 Or Chapter 7
    By gypsyred in forum Bankruptcy Law
    Replies: 7
    Last Post: 02-16-2008, 01:23 AM
  5. Chapter 13: Possible to File Chapter 13 After Chapter 7 Discharge
    By bigg_d in forum Bankruptcy Law
    Replies: 3
    Last Post: 01-29-2007, 10:34 AM
 
 
Sponsored Links

Legal Help, Information and Resources