Magnolia, AR asked in Bankruptcy for Arkansas

Q: What is the most you can make income wise to file for a chapter 7 bankruptcy in Arkansas?

My gross adjusted income was 88,000. I have 3 children and take care of my 2 in-laws. I have unsecured debt of about $150,000. My bills are current only because I move money around to make all the payments but no matter how much I work and overtime I put in, the debt keeps climbing.

Related Topics:
2 Lawyer Answers
Brandon M Haubert
Brandon M Haubert
PREMIUM
Answered
  • Bankruptcy Lawyer
  • North Little Rock, AR
  • Licensed in Arkansas

A: There is not a direct answer on that. For a household 6 the income is median income is $84,541. If you are above that income (which you are) you are subject to (you must take and pass) the means test to file Chapter 7. We could run the means test calculation and see of you passed (Ch 7) or failed (Ch 13). Also, people think filing Chapter 7 is cheaper, that is not always true. When filing Chapter 13, you do not have to pay back your unsecured debt, unless you have income or exemption issues and sometimes you get to cramdown your secured debts in a Chapter 13. Here are some links to the forms about the means test.

https://www.uscourts.gov/forms/means-test-forms/chapter-7-statement-your-current-monthly-income

https://www.uscourts.gov/forms/means-test-forms/chapter-7-means-test-calculation

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

A: 84,000 is the median income. You will need to successfully complete the means test. You should hire a bankruptcy lawyer to handle for you bc as close as you are with your income, you want it done right.

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.