Legal Question in Bankruptcy in Indiana

Re: income for chapter 7

As matters stand now, there is no such income requirement. You can file a Chapter 7 case, no matter what your income is, so long as it is not deemed an abuse of the bankruptcy process (a very rare determination.) Under proposed amendments which may become law later this year, if passed by Congress, there will be an income "means" test to deny Chapter 7 benefits to certain middle to high income debtors.

Re: income for chapter 7

As stated by both Eric and David, there is no ceiling or income level that requires you to file a Ch 13 as opposed to a Ch 7. However, the greater your income the greater the scrutiny of both your lifestyle and your income and expense statements (Schedules I and J). If there is excess income over living expenses, the Trustee will move to dismiss the Ch 7 as an abuse under section 707(b) of the Bankruptcy Code. Payments to unsecured creditors such as credit cards do NOT count as living expense.

In addition, if you make more money than most, the Trustee and the Court could move to dismiss since they want to see a change in your lifestyle which could result in you repaying your creditors.

Most experienced bankruptcy counsel offer free intitial consultations-seek one asap to learn all alternatives available, both in and out of Bankruptcy

John E Bator

BATOR REDMAN BRUNER SHIVE AND LUDWIG, P.C.

151 N.Delaware Street

1106 Market Square Center

Indianapolis, IN 46204

317-685-2426

Re: income for chapter 7

As David replied, there is no income requirement to do a chapter 7. Generally, as long as your necessary expenses exceed or equal your monthly net income, you can do a chapter 7. Even though the bankruptcy laws have not changed, the US Trustee's Office has stepped enforcement of what they call "abuse" cases. So while there is no income level that causes you to do a chapter 13, there is an unwritten line, that once crossed, will make it more difficult to get a chapter 7 discharge without US Trustee involvement. A competent bankruptcy attorney should be able to tell if you are near that income line or not.