Austin, TX asked in Bankruptcy for Texas

Q: Do I need to be late on payments or in collections to file ?

I am unable to work do to physical health issues. I applied for disability but was rejected of course. I just applied for rent assistance from social services and will not be able to make payments soon. I've never been late or unable to pay and would like to avoid collections and being late even.

Related Topics:
1 Lawyer Answer
Kevin W. Chern Esq.
Kevin W. Chern Esq.
Answered
  • Bankruptcy Lawyer
  • Chicago, IL

A: The determination as to whether you can file for Chapter 7 bankruptcy does not take the status of your debts into account. It begins by comparing your income to the median income in your state for a household of the same size. Most people who are below the median qualify for Chapter 7 bankruptcy. If the debtor's income is above the median, a more complicated analysis is employed to determine whether or not you have sufficient disposable income to make at least some payment toward your debts on a regular basis.

A local bankruptcy lawyer can run through the means test calculation with you to tell you whether you are likely to be able to file Chapter 7 bankruptcy and get a discharge.

I would also suggest, if you don't already have one, that you retain the services of an attorney to assist you with your disability claim. Many people who are initially denied are ultimately determined to be eligible through the administrative appeals process or litigation.

*Kevin Chern is Managing Partner of UpRight Law, a national law firm with licensed attorneys providing bankruptcy and consumer legal services in all 50 states. He is an Illinois licensed attorney with 21 years of federal consumer bankruptcy and consumer protection law experience. This response is for informational purposes only and is not intended to be legal advice. For legal advice, consult an attorney licensed in your state with the appropriate expertise.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.