How Difficult To File Ch7 With About $65,000 Income For Single

[Boston001]

Hi,
I am wondering prior to the new rules, how difficult it will be to get a ch7 with an income of around $65,000 and total debts of around $85,000 for a single person?

Who would be the person to decide if I have enough to pay my debts off instead of getting a ch7 discharge?

Is this considered very high income to file a ch7?

I know it will depend on my expenses, but I am just wondering as it is now with the old system pre October, who decides if a debtor has enough money to repay? What is the process that this is decided through?
Thank you.

[StaciMM]

As I understand it, it all depends on what your income vs. expenses are.

Thinking logically, expenses for a family of 1 will be less than expenses for a family of 5. Of course, if you have payments on things that are not dischargeable that might make a difference. (Such as student loans, alimony, taxes.)

[HHM]

It will depend on how reasonable your expenses are. A single person living in Manhattan would probably have $65000 in reasonable expenses, a sinble person living in Kansas, probably would not.

If I had to put odds without knowing anything more about your circumstances, your chances of being able to have a successful chapter 7 are less than 50/50.

Ultimately, the bankruptcy court judge decides all issues, but it will be the United States Trustee that files the objection to your bankruptcy if they think you make too much money to be in a chapter 7.

Under the new law, it will be virtually impossible for you to get a chapter 7. Go visit with an attorney and see what that person says. Most consultations are free (but remember, free consultations will tend to be sales pitches, so you may not get all your questions answered).

[Whittio]

Won't all the new expenses be based on the IRS tables for that area? I would check out the allowed expenses and see where you fall. I don't know how expensive your area is, but my initial response was $65k is a LOT for 1 person. We support a family of 5 on $40k in California (I am not filing BK myself, I am here to file for my mom who makes $20 for 1 person). It just seems like $65k would be sufficient to live on??

[Printer099]

Won't all the new expenses be based on the IRS tables for that area? I would check out the allowed expenses and see where you fall. I don't know how expensive your area is, but my initial response was $65k is a LOT for 1 person. We support a family of 5 on $40k in California (I am not filing BK myself, I am here to file for my mom who makes $20 for 1 person). It just seems like $65k would be sufficient to live on??

SOme of the expenses will be based off IRS local std and some off National std

[Whittio]

SOme of the expenses will be based off IRS local std and some off National std

So if you look up those figures, then you'll pretty much be able to figure out if you'll qualify or not. I know some of those figures were pretty low for some areas. I read a post here before about the IRS standard expense, being hundreds lower then the actual cost on someones rent. And you wont' be able to take the actual cost.

[edwards2]

You are getting some great advice. We are a family of 3 in Tennessee and our combined income was almost $100k. To offset that income however, we had thousands of dollars of medical bills. You live in the eastern U.S. where I assume the cost of living is higher than in Tennessee but my first reaction would also be that you make too much money for one person to file a Chapter 7. However, an attorney could clarify that. Expenses vs income is obviously important. Whatever you do - do it NOW.