I'm current on my bills every month but my bills are outweighing my income.. I pay about $3000 dollars a month in bills, including mortgage, credit cards, etc. , but take home an average of $2800 a month, not including everyday expenses, such as food, gas, etc. I find myself paying credit cards every month, then maxing them out, paying bills and buying essentials such as food, gas, meds, etc..Can I file for a chapter 7 bankruptcy?
Herbert WeinbergBankruptcy AttorneyNorth Andover, MAMA licensed ·
You have given very limited information which only allows a limited answer.Assuming you have no assets with equity and your expenses are all reasonable, not onlly are you elgible for bankrutpcy but you are a prime example of why bankruptcy is needed to help people escape debt and get a fresh start in life.
More information on your assets and a breakdown of the type and amount of debt would be helpful
Bankruptcy law doesn't prohibit you from filing just because you are current, but not everyone is eligible to file bankruptcy. There are two factors that determine whether you can qualify to file bankruptcy, whether you can pass a "means test" showing that if you are above median income for your household size, you have enough deductions, and a budget test, showing that after paying your necessary living expenses, you can't pay your debts.
Hope this perspective helps!
The important question is how much you've been spending to pay your unsecured long-term debt, such as credit cards. If you can afford to spend $200 per month on that and still pay your other regular bills, you may have to file under chapter 13. But you really need to see an attorney and let them help you decide.
Michael B FeinmanBankruptcy AttorneyAndover, MAMA licensed ·
There are rules in place since changes to the law in 2005 that will affect whether or not you can file chapter 7. But the fact that you are current on bills does not impact your ability to file some form of bankruptcy. More information is needed.
Generally one can file for bankruptcy when their monthly income is less than their monthly expenses.
Are you using your credit cards to assist you in paying some of your bills?
Have you tried to lower the interest on your credit cards?
Are you just paying the minimum amount for your credit cards?
