What happens if you have some assets that you might want to sell? Perhaps you have a motorcycle, some collectibles and other items that might be able to bring in a bit of money. You might want to sell those items before you file for bankruptcy and use the money for things you need or for your attorney fees. Continue reading
Most people have heard of chapter 7 bankruptcy. In this posting, I want to explore how it works.
Chapter 7 is based on the idea that you cannot afford to make any payments on your debts. To put it another way, even if you had no debts, your living expenses alone leave you broke by the end of the month. The court doesn’t take your word for this. You have to prove you can’t pay your debts. You submit a statement of your monthly income and living expenses. You must provide proof of earnings and tax returns as well. People with above-median income have additional requirements. Continue reading
To qualify for chapter 7 bankruptcy, you must prove you cannot afford to make payments on your debts. Bankruptcy law presumes that if your income is low enough you can receive a chapter 7 discharge of debts. The latest chart of annual income looks like this: