Basic Chapter 7 Bankruptcy Guidelines
Your ability to qualify to file for a Chapter 7 bankruptcy and wipe out your debts is determined by your household’s “Current Monthly Income”, according to the U.S. Bankruptcy Code. The easy way to calculate whether you qualify for bankruptcy is by adding:
• your average gross (before taxes are taken out) income over the past six months
• PLUS your spouse’s gross income (unless you’re separated) during the same period
• PLUS any contributions to your household expenses by other persons
Current Monthly Income does not include:
• Social Security benefits and
• Unemployment benefits
Your spouse’s income must be included, even if he/she isn’t filing, but if he/she isn’t filing, you can deduct out your spouse’s personal bills which will not be affected by your bankruptcy.
If your Current Monthly Income is less than the state average, then you will generally meet the Chapter 7 bankruptcy qualification and should be in touch with the Hartford area’s professional and confidential bankruptcy lawyers at Beckett Law.
If your Current Monthly Income is greater than the state average, then you may or may not be eligible for Chapter 7 – it’s not a bright line test, but if you don’t qualify for Chapter 7, you can still explore Chapter 13 and/or Chapter 11.
That’s what you need and why you’re on this website. You need an experienced, top lawyer in Hartford that can do the expert calculations necessary for a successful bankruptcy filing process from the start. Our central office location allows us to service all of Connecticut and our attorneys can file in any of the 3 bankruptcy court districts of Bridgeport, Hartford and New Haven.
Learn more about our confidential bankruptcy services at Chapter & Bankruptcy Help