Who can file Bankruptcy?
The first thing an experienced bankruptcy attorney will do is evaluate whether filing a Chapter 7 bankruptcy is even an option for you. This is why George C. Selby and Selby Legal will ask you about your income for the last 6 months. Then we do some math based on your average monthly income from six months prior to the day we file your Chapter 7. If your ANNUAL income ends up being under a certain amount, you are likely eligible to file a Chapter 7. This number is based on your “household size,” a term which may require some help from a bankruptcy lawyer to understand, but usually is simply “Two Parents and One Child = Household Size of 3.” An individual person has a household size of one in New York. If an individual New Yorker wants to file a bankruptcy under Chapter 7, he or she would automatically qualify if their income level was under $51,408 per year. The income that is used to determine the person’s income level is the 6 months prior to filing bankruptcy. This is why your Chapter 7 bankruptcy attorney will ask you for proof of your income for the previous 6 months before filing your case.
However, if your income is greater than the median income for your household size, this DOES NOT mean you cannot file a Chapter 7! There have been misinformation campaigns designed to convince Americans that they “make too much to file,” but they can never know this for sure without speaking with an attorney. Your Chapter 7 attorney will just need to do some different, more difficult, math. George C. Selby, Esq. and Selby Legal has experience with determining whether their clients can file a Chapter 7 even though they are above the median income limit. The calculation involves a careful analysis of each client’s monthly expenses and their unique situation.
If you are not sure if you can file Chapter 7 bankruptcy or if you have been told you cannot file bankruptcy, call Selby Legal today for your free consultation. You will speak with an experienced bankruptcy attorney and your questions will be answered.