There are a number of myths and misconceptions surrounding bankruptcy,
and many of them can cause consumers to incorrectly believe that bankruptcy
is not right for them. Among these types of misconceptions is that bankruptcy
can only be filed by consumers with limited income, and that earning too
much money can preclude someone from being able to file. This is entirely false.
The fact of the matter is that debt and financial instability takes make
forms. The U.S. bankruptcy code was created with this in mind, and because
our laws recognize that financial uncertainty looks different for everyone,
there are many opportunities for wage-earners to still initiate the bankruptcy
process and receive the benefits and long-term stability it can provide.
Our Dallas bankruptcy attorneys at Allmand Law Firm, PLLC work closely
with clients who come to our firm to address their questions and concerns,
and to explain how they may qualify for bankruptcy or other debt relief
actions depending on the individual facts of their financial situation.
We know that thousands of Texans of all income levels can benefit from
bankruptcy, including those with incomes over six figures. We work diligently to
help our clients understand this, and how we can guide them through the
process ahead.
Qualifying for Bankruptcy
U.S. bankruptcy laws establish several different Chapters of bankruptcy
under which a consumer can file. Because there are certain qualifying
criteria associated with each Chapter, and because they all have their
unique pros and cons, whether or not you qualify for or should file under
a particular Chapter is a unique matter.
First and foremost, consumers who have limited assets may wish to file
Chapter 7 bankruptcy and liquidate any assets for payment to their creditors. Chapter 7 bankruptcy
has strict qualifying criteria based on household income. When determining
your eligibility, a special formula is used to average your income over
six months prior to filing. This average monthly income is then compared
to the median income of families in the state of Texas.
If your household income is less than the median monthly income for the
state of Texas, you will be eligible to file bankruptcy under Chapter
7. If your income is more than the median income, you may still qualify
for Chapter 7 by deducting certain expenses per bankruptcy laws. These
deductions can include housing, food, taxes, transportation, insurance,
and more. Should this still not qualify you for Chapter 7, you may choose
to file Chapter 13 bankruptcy, which is intended for wage-earners who
have the resources to make minimum monthly payments toward consolidated debt.
Chapter 13 bankruptcy can provide many options that may uniquely benefit wage earners. This
includes the ability to keep personal property and assets, as monthly
payments can be made toward debt. It can also be used as a tool for foreclosure
defense. Just as with Chapter 7 bankruptcy, Chapter 13 bankruptcy will
conclude with a discharge of unsecured debts.
Request a Personalized Financial Empowerment Session!
Whatever your current situation may be financially, taking steps to address
the debt and related issues you face is one of the most important things
you can do. Our legal team is led by Board Certified Bankruptcy Expert
Reed Allmand, who focuses on helping hard-working men and women across
Dallas-Fort Worth and the neighboring communities of Texas when they need
it most. Mr. Allmand and our legal team are standing by to help you get
started along the road to lasting debt relief, and can review your situation
personally during a FREE financial empowerment session. During the consultation,
we can determine which options you may have available, and how we can
help you pursue the one that’s right for you.
Contact us today to get started!