Chapter 7 bankruptcy holds the legal power to grant some consumers with untenable debt a clean start, financially speaking. When Chapter 7 works effectively, a debtor follows the strict guidelines that apply to the process and receives much needed relief from overwhelming debt. With this relief, consumers have the opportunity to reset their financial lives and rebuild their lives from the ground floor.
However, for many individuals, Chapter 7 is not actually available. In order to qualify for this form of bankruptcy, a person must maintain an income below the qualifying threshold. If a person has too high of an income, that person may need to take some fairly drastic steps in order to qualify for the procedure.
The limits for filing a Chapter 7 generally align with the median income in a given state. Those whose income is equal or less than the state median income may qualify for Chapter 7 without further qualifications. However, if a person’s income exceeds the state median, then that person may need to meet additional requirements. You may also consider other debt reduction strategies, such as a Chapter 13 procedure. Chapter 13 procedures generally allow debtors to keep their property if they abide by a fairly rigid repayment structure to address excess debt.
If you suspect that your income exceeds the state median income but still hope to utilize Chapter 7, be sure to seek out professional legal counsel. You deserve to fully understand your relief options, and an experienced bankruptcy attorney can help you examine all of your available debt reduction strategies while ensuring that you do not miss important benefits during the process.