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Income is too high to file for Chap 7

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kerinmiami
Regular Contributor

Income is too high to file for Chap 7

I have been on a financial rebound for about 2 years.

August 2019, I had a hardship. I could not file BK because I could not afford the lawyer fees.

2023, I made over 2022 80k (2023 I will make a little more 3-5%) and I have some lawsuits from credit cards (synchrony bank) - about 5 cards. They sued me for all the cards. 2 got dissmisssed. 1 I am on payment plan with them. Another one pending - I have the money to settle. When I spoke to a another lawyer I was told I make too much for 7 but I could file 13. I had over 25 credit cards most did not sue me. If I filed 13 all of the card holders would notified and I would have to pay all of them back.

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2 REPLIES 2
Horseshoez
Senior Contributor

Re: Income is too high to file for Chap 7


@kerinmiami wrote:

I have been on a financial rebound for about 2 years.

August 2019, I had a hardship. I could not file BK because I could not afford the lawyer fees.

2023, I made over 2022 80k (2023 I will make a little more 3-5%) and I have some lawsuits from credit cards (synchrony bank) - about 5 cards. They sued me for all the cards. 2 got dissmisssed. 1 I am on payment plan with them. Another one pending - I have the money to settle. When I spoke to a another lawyer I was told I make too much for 7 but I could file 13. I had over 25 credit cards most did not sue me. If I filed 13 all of the card holders would notified and I would have to pay all of them back.


Well, kinda-sorta...

 

A few comments:

  • I strongly advise folks to interview at lease three attorneys, better yet five, and then pick the one you feel most comfortable with.
  • Making between $80,000 and $90,000 per year doesn't automatically preclude you from filing a Chapter 7; there is a whole lot more to it than that.
  • If you do end up filing a Chapter 13, depending on the means test and your current assets, your payback would range anywhere from 0% to 100%; regardless of which percentage you might end up with, the interest on your unsecured debt stops.
  • Keep in mind, while Chapter 13s are harder to get through, they only stay on your credit reports for 7-years from your filing date, Chapter 7s stay on for 10-years.

Good luck and let us know how you make out.

I categorically refuse to do AZEO!
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Shooting-For-800
Senior Contributor

Re: Income is too high to file for Chap 7

I would think about settling each one as needed.

How much debt?

How much really left over each month to pay them?

Rebuild started in 2014  -  $100k unsecured credit in 2017  -  $500k unsecured credit in 2024.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!



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