I live in Swansea Massachusetts, own my own home, a car and a mother of two children. I’m drowning in bills, I can’t afford my bills every month, even though I make $65,000 per year. I still owe $10,000 on a payday loan, which has a 150% interest rate and I simply can never pay it off it seems. I have approximately $10,000 in credit card debt. I owe $17,000 on my car in it already has 140,000 miles on it, because I have to drive so much for work. I also oh $120,000 on my house, which is only worth hundred and $180,000. Somebody told me that I make too much money to file chapter 7 bankruptcy, is this true? What are my options? Am I still able to file for bankruptcy?
The first thing to consider when determining if you can file for chapter 7 bankruptcy, is the state income median level. This basically is a level of what the majority of people in your particular state and or county make per year, depending on family size. In Massachusetts the median family income is as follows:
1 EARNER: $55,356
2 PEOPLE: $69,673
3 PEOPLE: $85,637
4 PEOPLE: $106,812
With this means is in a household with one person earning income you can still make up to $55,356 and still file for chapter 7 bankruptcy, if there are two people in the house you can have a combined household income of $69,673, and so on. The number of people is not simply the amount of people earning money it can also be children. So in your particular situation there are three people living in your house, so you can earn up to $85,637 and still file for chapter 7 bankruptcy. So you are well within the range of being able to file for chapter 7, especially considering your bills are greater than your income.
If you do make higher than the median family income for your particular state, there is still hope in the form of chapter 13 bankruptcy. Chapter 13 bankruptcy does differ from chapter 7 bankruptcy, and that it doesn’t simply wipe out all your debts, it gives you a chance to pay back some of them if you make too much money. It’s also a very useful tool for saving a home from foreclosure or saving a car from being repossessed if you are behind on your monthly payments.
Joseph F. Botelho, Esq.
BOTELHO LAW GROUP
Attorneys At Law
901 Eastern Ave.
Fall River, MA 02723
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