How to File for Bankruptcy When Making More Than the Means
- 1). Delay your filing if your income has gone down recently. If you or your spouse have lost your job, that's going to affect your average income. If delaying filing for Chapter 7 bankruptcy by three months would enable you to pass either the median or the means test, hang on until until you can pass one of these tests.
- 2). Download forms and instructions for filing Chapter 13 bankruptcy from the U.S. Courts website, if you can't qualify for Chapter 7. You can file for Chapter 13 as long as your debts are less than $360,475 and your secured debts are less than $1.08 million and you have enough income to set up a payment plan for your creditors. These figures were current in October 2010.
- 3). File for Chapter 13 bankruptcy protection in the federal district court where you reside. If the court accepts your bankruptcy petition, it will set up a payment plan lasting three to five years. Under the plan, you'll pay off as much of your debt as possible. At the end of the repayment plan, your remaining debt is wiped out. However, certain debts, including your mortgage, back taxes and child support, cannot be discharged by the court.
- 4). Begin making payments under the plan. You must meet the payments you agreed to or the court will reject your bankruptcy petition.
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