Most people don’t want to get into a situation where they must apply for bankruptcy in order to get their life and debt under control. Unfortunately, it does happen because people do end up with more debt than they can afford. Many people try to find reasons why others must file for bankruptcy so they can avoid this situation themselves.
If you have an average or median income then you might wonder what your chances are of having to file for bankruptcy. In truth, every person’s case is unique and whether or not they qualify will depend on their specific circumstances. Nevertheless, there is a relationship between income and whether or not you will qualify to file for bankruptcy.
The Relationship Between Income and Filing for Bankruptcy.
You probably already know that those with a lower income will likely qualify to file for bankruptcy, but others can also be eligible. If you have a median or average income you might qualify, as long as you can show what financial hardships have brought about the need to file for bankruptcy.
For example, are you caring for a disabled child that has caused you to suffer financially and make repaying your debt difficult? Or what if you have become very sick and the cost of healthcare has created a huge financial strain, regardless of your income?
Your annual household income will matter slightly when looking at whether or not you qualify to file for bankruptcy. However, other things will matter more.
Your life circumstances are a better indicator of whether you will qualify. These expenses can be subtracted from your income so that you will fall into a lower income category making your eligibility for bankruptcy more likely.
Who Can’t Apply for Bankruptcy?
Some people think that bankruptcy is like a get out of jail free card. You have the ability to make poor financial decisions, go on expensive vacations, buy fancy clothes on credit cards you can’t afford, and then try to wipe out your debt with a bankruptcy.
This will be evident when your situation is examined and you won’t be permitted to file for bankruptcy, or your case will be converted to a Chapter 13.
Need Help from a Bankruptcy Lawyer?
Sometimes filing for bankruptcy becomes necessary. In order to get your debt under control you will need to file, but you should always speak with a lawyer before making any decisions that will affect your financial future. In some cases bankruptcy will be the answer, but in others it won’t be the right decision.
Contact a bankruptcy lawyer in Terre Haute to talk about your bankruptcy case today. You don’t have to continue dealing with debt forever.