If I am a contractor, could I file BK

[clig_fred]

After 6 months of unemployment, I found a job as a Independent Contractor. Could I file for Chapter 7 with no problems?

I mean my income is now very high but my credit card interest is too high.

I pay 22% and need to stop this. I may be able to pay minimum due on my credit cards but it would take me 66 years to finish it all.

However, I have a good just just now. Does having a contractor job disqualify me for Chapter 7 bankruptcy?


Thanks in advance.

[HRx]

After 6 months of unemployment, I found a job as a Independent Contractor. Could I file for Chapter 7 with no problems?

I mean my income is now very high compared to my expenses but I still want to apply for BK because I am not a permanent employee; I am just a full-time contractor who makes very good money but only recently.

Could I file for bankruptcy or should I be denied BK based on salary to expenses ratio? My CC debts is too huge $ 40,000 and I don't pay the minimum due although I can.

Thanks in advance.

Yeah,

So you're a 1099, you'll simply need to provide proof of your income over the past three to five years. Keep in mind that if you demonstrate a steady level of income, and your DTI (Debt to Income) Ratio isn't were it needs to be, you may be required to file a Chp13 instead of a Chp7. .e.g. If your income has been averaging $50,000 per year over the last five years, and you have $40,000 in unsecured debt, then a Chp7 wouldn't be challenged.

Good Luck!

[clig_fred]

Todd,

Thanks but let me confirm my understanding please: If my income has been averaging $50,000 per year or less over the last five years, and I have $40,000 or more in unsecured debt, then Chp7 would be accepted in court (i.e., not challenged)?

Thanks

[HRx]

Todd,

Thanks but let me confirm my understanding please: If my income has been averaging $50,000 per year or less over the last five years, and I have $40,000 or more in unsecured debt, then Chp7 would be accepted in court (i.e., not challenged)?

Thanks

That's correct. The key is to have debt equal to or greater than ones income, whenever petitioning for a Chp7. This will demonstrate insolvency.

-Todd

[clig_fred]

How long is the evaluation period?

Todd,

You are very helpful and I could not beleive this is a free service forum!!

"The key is to have debt equal to or greater than ones income, whenever petitioning for a Chp7. This will demonstrate insolvency. "

How long in the past does the BK court look into the past to nake this decision? 3 years

If income is greater than debt for 1 year in those 3 yeas but the other 2 years it's not, then does this still qualify me for Chapter 7?

Thanks again