Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
What is your Bankruptcy Law question, please? (What would you like to know?)
I'm sorry, I just rambled on. Will I have to give up or sell my home? Will I have to pay my
credit cards? What about my car which I just got in April? I need it and the payments
are $310 a month. Can that be touched? There's no value because I financed everything.
What is the current market value of your home?
What is the balance on the mortgage?
How many are in your household?
What is your current gross monthly income?
I just had it appraised for $125,000. The balance on the mortgage is $116,677.58.
I live alone. My gross monthly income is $4425.
Doesn't my health insurance $181 a pay (I get paid every two weeks) or my Flexible
Spending money $134 a pay get me a break? I usually bring home $1000 a pay.
Your gross monthly income is below the amount ($4,842) that would qualify you to file a Chapter 7 Bankruptcy. This is the preferred one, because the filer pays nothing to his creditors to have his debts discharged. So, you do qualify to file a Chapter 7.
Additionally, you would be able to keep your home if you file, as it has less than $20,200 equity, and you would be able to keep your car with no equity, and continue to make the monthly payments.
How do they determine your income for bankruptcy? Paystubs? Income tax returns? Or
Thank you for accepting my answer!
The Bankruptcy court looks at your paystubs to determine your gross (before-tax) income.
W2's? Last year I only had $33,000 because of medical. This year I'm volunteering to
work all my holidays(straight pay) and one of my off days(time and a half). Years ago I
made $60,000. Am I in danger of having to do the other bankruptcy if I continue with
working all this overtime? What are the consequences of the other bankruptcy? Hope I'm not becoming a pain hitting you with so many questions.
I just got your response about the paystubs. I thought I'd have to wait 24 hours for that
response. That's what the site said.
The court goes by your paystubs for the 6 months before you file. If your average monthly gross pay is less than $4,842 for the 6 months before you file, you are okay. This means some months can be more than $4,842, as long as there are some months that are less than $4,842.
If you have high medical bills, the court can take that into consideration.
If you have a period where your income exceeds the monthly amount, but you know it is only temporary, and you income will go down, you can wait a bit until your income goes down.