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Brent Blanchard
Brent Blanchard, Bankruptcy Attorney
Category: Bankruptcy Law
Satisfied Customers: 1975
Experience:  Twelve years experience in all aspects of debtor & creditor BK.
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My only income is alimony, and I have been unable to find work

Customer Question

My only income is alimony, and I have been unable to find work since divorcing. I'm 56 and had been a homemaker for over 25 years. My job skills are limited. I have no property, no retirement, nothing of value, except my used honda civic. I have credit card debt I am struggling to pay. Am I eligible for bankruptcy chapter 7.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Brent Blanchard replied 7 years ago.
To qualify as a "Debtor" in a Chapter 7 "liquidation" bankruptcy, a person need only reside in the area served by the US BK Court where the case is filed, and have debts that do not exceed $1.something million (those people go to Chapter 11).

If the equity value of the car is less than $2,150 ($4,300 for a married couple) it's totally exempt. If more, you might need to "buy" the excess value out by paying whatever amount the excess is to the Trustee to divide equally among whatever class of creditors gets the last smidgeon of money.

Thank you.

BB.
Customer: replied 7 years ago.

I've already been to the websites, as stated, so I know I'm "eligible to file." I need to know before I spend 300.00 if my income of alimony only, (1800./mo) would qualify me for approval for Chapter 7. I have less than 25,000. debt, credit cards only, which I have had to use for living since the divorce, as the cost of rent in So. Calif. was all I could afford to pay. I COULD NOT find a job, it's very competitive there. So, now I am living where I can live within my income of alimony until I find a job. Would I be approved for Chapter 7??

Expert:  Brent Blanchard replied 7 years ago.
"Am I eligible for bankruptcy chapter 7."

Your question has been answered. Now you state:

". . . I know I'm "eligible to file."


Your second question is now:

" I need to know before I spend 300.00 if my income of alimony only, (1800./mo) would qualify me for approval for Chapter 7."

There are no truly firm income limits for a Chapter 7 BK Debtor to get a discharge. There *is* a "presumption of abuse" WHICH CAN BE REBUTTED for Oregon Debtor incomes above $42,495. Because your income was well below that threshold, and your only mention of income was that it is *low*, your question did not appear to be concerned with whether your income was too high to be eligible for a discharge.

The dischargeability of debts themselves depends on what debt you are talking about, and in many instances, how recently the debt was accrued. Some credit card debts which are too recent (usually 90 days or less), or which reflect "luxury" purchases, would not be dischargeable.

I see nothing in either of your questions which would be an obstacle to dischargeability.

Thank you.

BB.
Brent Blanchard and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 7 years ago.

Thank you for your expertise. I really appreciate it!

Expert:  Brent Blanchard replied 7 years ago.
You're very welcome. You may want to look into the rules about getting a break on the filing fees. My district still uses the old Latin rendering "in forma pauperus".

Thank you.

BB.