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St Louis Bankruptcy: Why Does It Matter How Much I Make If I Am Going To File For Bankruptcy?

ONLY $675 ATTORNEY FEES FOR A ST LOUIS CHAPTER 7

Your household income is the single biggest factor in determining which chapter of bankruptcy you may file. In a nutshell, if you are below the median income for your particular household size, then you can probably file a St Louis Chapter 7. But if you are above the median income (or at least above this level after all deductions may be taken), then the court will require that you file a St Louis Chapter 13. Below is a description of how it all works:

The Federal Bankruptcy Code clearly sets out who may file a Chapter 7. If you are below the median income level for your particular household size, and you have not filed a Ch7 within the last eight (8) years, then you may file a Ch7. What is the “median income level” for your household size? That is the main question when it comes to bankruptcy law.

Let’s look at a specific example: You are a household of three (you, your spouse, and a minor child). According to the government, the median (or average) income for a household of three is: $62,110 (as of September 2015). Let’s say you and your spouse each gross $30,000 per year (so 60K total gross wages). And let’s also assume that your individual earnings is the only income in the house (i.e. there is no income from Social Security, foods stamps, unemployment benefits, or from the operation of a business).

ONLY $300 UPFRONT ATTORNEY FEES FOR A ST LOUIS CHAPTER 13

In the example above, you would be considered a household that is below the median income level for a household of three (the household income is 60K, and according to the government, the average income for the size of your household is $62,100). And so long as you have not filed a Ch7 in the last eight years, then you can file a St Louis Chapter 7.

If you are above the median income level (or if the deductions you can use do not bring you below that level), then the only thing that you can file is a Ch13. But filing a Ch13 is not the end of world!! There are many benefits that you can only take advantage by filing a Chapter 13. This would include paying off your car note at the fair market value of the car (as opposed to the current balance owed), getting caught up on your mortgage so that the bank does not foreclose on your property, and stripping off a junior lien or second mortgage on your house.

But the best way to understand what your options are is to meet with an experienced St Louis bankruptcy lawyer!! We will answer all of your questions, describe your rights, and help guide you through the process step-by-step!

The affordable St. Louis bankruptcy attorneys at The Bankruptcy Company have been saving and protecting people’s assets for years. Our goal is to make sure that you keep the assets and property you want, discharge the debts that you want to get rid of, and do it all at an affordable cost to you. All phone conversations and office consultations are free of charge.

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