QUESTION
If filing for chapter 13, is there such a thing on making too much money? Does this mean you cannot file?
Asked on Mar 30th, 2017 on Bankruptcy - Colorado
8 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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No, there is no income limit in chapter 13.
Answered on Jun 25th, 2017 at 10:32 AM
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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You can always file. It's just a question of what Chapter you file under and whether you can get a complete discharge of your debts.
Answered on Jun 25th, 2017 at 2:40 AM
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Chapter 13 payments are based either on the value of your assets, the type of debt you have, or your income. Whichever of these analysis results in the highest chapter 13 payment is what you have to pay. In your case, if the income analysis is highest, then you need to pay based on your income and YES, the higher your income, the more you pay. But to answer your questions, YES, you can file.
Answered on Jun 22nd, 2017 at 6:50 PM
If you make a lot of money it is possible that you will not qualify to file Chapter 7, but there is not an income limit that would prohibit you from filing Chapter 13. There are debt limits that can prohibit you from filing Chapter 13, but not income limits.
Answered on Jun 22nd, 2017 at 6:50 PM
When you file Chapter 13, there is a limit to how much debt you can have, not how much money you make. You may have confused Chapter 13 with Chapter 7. In Chapter 7, you need to show that you do not have enough income to pay much beyond your necessary living expenses. In Chapter 13, the Court determines how much you can afford to pay creditors, and you pay that amount, subject to ongoing adjustments depending on your situation, for up to 5 years. Your payments are then allocated to the court administrative costs and among your creditors.
Answered on Jun 22nd, 2017 at 6:49 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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There can be too much debt to file a chapter income. There is no such thing as too much income.
Answered on Jun 22nd, 2017 at 6:49 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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It doesn't mean you cannot file. It does mean that you will probably have to pay more into the Plan, in accordance with your earnings and legitimate expenses. There are some limits on the size of your total secured and unsecured debt, but that is not the question you asked.
Answered on Jun 22nd, 2017 at 6:49 PM
No. If you are a high income earner, you may have to pay back a portion of your debts. Meet with an experienced BK lawyer.
Answered on Jun 22nd, 2017 at 6:49 PM