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socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 37971
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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what is the maximum annual earnings for a single person filing

Resolved Question:

what is the maximum annual earnings for a single person filing chapter 7 bk
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  socrateaser replied 7 years ago.

The answer is not straightforward.

 

Under 11 USC §707(b)(2), a Chapter 7 case filed by an individual debtor whose debts are primarily consumer debts is subject to a presumption that the case should be dismissed for abuse if the debtor's net income exceeds specified levels based on a statutory formula. See 11 USC §707(b)(2)(A)(i). The presumption of abuse will be triggered under the formula if the debtor's current monthly income, reduced by allowable monthly expenses (see 11 USC §707(b)(2)(A)(ii)-(iv)) and multiplied by 60, is not less than the lesser of:

 

  • The greater of (1) 25 percent of the debtor's nonpriority unsecured claims in the case, or (2) $6,575; or
  • $10,950.

 

If you are thoroughly confused, you may want to just take the "means test" at this link. It will tell you if you are a candidate for Chapter 7.

 

Hope this helps.

 

 

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Edited by socrateaser on 12/4/2009 at 12:12 AM EST
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