Adrian, MI asked in Bankruptcy for Michigan

Q: What is the income limit to receive help from this office? For bankruptcy.

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3 Lawyer Answers
Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: There is no income limit but price varies from attorney to attorney.

Trent Harris
Trent Harris
Answered
  • Bankruptcy Lawyer
  • Jackson, MI
  • Licensed in Michigan

A: If by "this office" you mean a private bankruptcy law firm, there is no income limit to file bankruptcy. But your income might affect the bankruptcy chapter you have to file under.

If you want to file Chapter 7 bankruptcy, your income needs to be less than the state median for your household size, or else pass the means test. For a household size of 1, for example, this is currently $50,179. If you have income higher than $50,179, then you can still qualify for a Chapter 7 but you would need to pass the means test using allowed expenses. A bankruptcy attorney can help you with this.

If you want to file Chapter 13 bankruptcy, there isn't an income limit. But there are debt limits - for example you can't have secured debts more than $1,184,200, and unsecured debts of more than $394,725. Your income will, however, affect your disposable monthly income, which will in turn affect your plan payments and how much you have to pay to your unsecured creditors under the plan. Again, a bankruptcy attorney can help you with this.

As always, be sure to talk to a qualified attorney about your specific situation before choosing to rely on any information you get from internet discussion boards such as this one.

Robert Keyes
Robert Keyes
Answered
  • Bankruptcy Lawyer
  • Ypsilanti, MI
  • Licensed in Michigan

A: No limit.

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