Minneapolis, Minnesota: Income and Bankruptcy
When filing bankruptcy, your income will determine which chapter you are eligible for. Your attorney and you will examine both the means test as well as your disposable income. Your attorney will calculate the income you have for the means test to determine which chapter you should file. This calculation is based on gross income for the six months prior to the month of filing. Your attorney will consider income from all sources, including child support, wages and alimony, unemployment benefits, overtime, bonuses and contributions to your household. You must meet the median income in your state to file a chapter 13 or chapter 7 case. In Minnesota, a household with one person is $72,319, a household with two people is $93,855, a household with three people is $117.426 and if you have four members, it’s $141,903, plus $9,900 for each dependent. If your income exceeds these threshold numbers, it may be necessary to file a chapter 13 bankruptcy five-year plan.
Income can also be used to determine your disposable income after you have paid all your reasonable and necessary expenses. If you have enough income to pay your creditors at the end each month, you may want to consider a chapter 13 bankruptcy. Your attorney will review your budget and income.
To be eligible for a chapter 7 bankruptcies, you must meet two income tests. You have to pass the means test based on your household size as well as have a monthly income that is disposable.
CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
If you have questions about bankruptcy and would like to do a free consultation to go over your options, visit
www.lifebacklaw.com to speak with an attorney. You will be glad that you did! https://www.youtube.com/watch?v=OqWvq01zRXI
