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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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What is the ratio debt to income to meet chapt 7 bankruptcy

Resolved Question:

What is the ratio debt to income to meet chapt 7 bankruptcy measures in Texas. We would like to keep our house, 10 yr old Yukon and 5yr old jeep. Cars paid for, house purchased 2003 $187500 still owe 150000.
Submitted: 2 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 2 years ago.

cfortunato :

Hi JACustomer,

cfortunato :

To qualify to file a Bankruptcy, the Bankruptcy court looks primarily at the debtor's gross income, not the ratio of debt to income.

cfortunato :

There is no limit to the amount of debt a Chapter 7 Bankruptcy filer can have.

cfortunato :

If you file, you will be allowed to keep your house.

cfortunato :

As long as it is on less than 10 acres if in a city, or on less than 100 acres if outside a city.

cfortunato :

And you are allowed to keep one car for every adult with a drivers license in your household - regardless of the value of the car.

cfortunato :

I think this is what you wanted to know. If not, please let me know.
Thank you.

Customer: Well, I think you have answered my question as first stated. Thank you. We have 2 cars and one house 3 acres, county. Gross income is $70,000 pension. In general would we have a chance? We are older with medical problems that put us here, should we go down this road?
cfortunato :
cfortunato :

How many are in your household?


 

cfortunato :

Is any of the $70,000 from Social Security?


 

Customer: 2 household
Customer: 1 home 3acre in county
cfortunato :

Is any or the $70,000 pension from Social Security?


 

Customer: 70,000 gross income pem
cfortunato :

Is any of


the pension income from Social Security?

Customer: 180,000 debt from medical back and cancer
Customer: No police pension
Customer: Retired LAPD pension
cfortunato :

The allowable gross income for a household of 2 in Texas is $53,952. However, if you have extraordinary medical bills that you have to pay regularly, then you may still be able to file.

cfortunato :

Because you can deduct medical bills from your income.


 

cfortunato :

Otherwise, you will be able to file a Chapter 13 instead of a Chapter 7.


\

cfortunato :

With a Chapter 13, you have to make monthly payments to the Bankruptcy court for 5 years. However, you will only have to pay your disposable income - which is your gross income minus your expenses.


 

cfortunato :

Not including your debts.


 

Customer: Do insurance payments qualify as well
cfortunato :

Insurance payments that you pay or that you receive?


 

Customer: Muse pa
Customer: Shoot
Customer: We pay a portion of the insurance out of his gross pay it appears
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience: Bankruptcy professor.
cfortunato and 4 other Bankruptcy Law Specialists are ready to help you
Expert:  cfortunato replied 2 years ago.
Yes - you can deduct insurance payments and medical bills from gross income.
Customer: replied 2 years ago.
Did I complete the process for giving you payment, tip (small as it is) and excellent rating?
Expert:  cfortunato replied 2 years ago.
Yes - you did.
Thank you very much for accepting my answer, and for the bonus and the positive feedback!

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