Legal Question in Bankruptcy in Virginia

declaring income,max amount household income

I have an household income of 4173.00 per month. My expenses ttl about 4444.00 which includes my first and sec. mort., but not including the creditors i plan to bankrupt, which ttls about 2500.00 more.

can i bankrupt and also i rec. 1170.00 from the state of maryland for my 2 kids which were adopted and since i dont have to claim the income on my tax return do i have to claim it on bankruptcy paper. last quest. is the max amount of household income 70,000.00 to claim chapter 7.

Thanks

Asked on 6/06/06, 7:06 pm

2 Answers from Attorneys

Daniel Press Chung & Press, P.C.
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Re: declaring income,max amount household income

[This is general information only, not legal or bankruptcy advice or assistance. For legal advice, consult a lawyer.]

All income, including child support income, and whether taxed or not, has to be scheduled. Depending on the source and purpose it may not count in the means test, but it must be listed. There is no maximum income to file bankruptcy, but those with primarily consumer debt with income over the state median are subject to means testing to determine whether a chapter 7 filing is presumed abusive (the presumption can be rebutted).

Anyone contemplating bankruptcy should see a competent bankruptcy lawyer to go over the specifics of their case and find out whether Chapter 7 is right for them.

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6/06/06, 7:18 pm
James Wilson James H. Wilson, Jr., Attorney & Counsellor at Law
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Re: declaring income,max amount household income

You should consult with a Virginia attorney to discuss the applicability of the law to the facts of your situation. Many bankruptcy attorneys offer free initial consultations.

You have not stated enough information to answer your question. Your question concerns the impact of "means testing" under Section 707 of Title 11 of the U.S. Code, introduced last year in the new Bankruptcy Abuse Prevention and Consumer Protection Act. Means testing cannot be adequately explained in the limited space available to us in our answers here. There are several websites where you can research state and federal laws, such as findlaw.com. Read Section 707 of Title 11 - understanding it is a good test of whether you should consider filing by yourself.

You are required to disclose all income you receive, taxable or not.

If you should decide to seek bankruptcy relief, you can represent yourself, you can hire an attorney to represent you, or you can get help in some localities from a bankruptcy petition preparer who is not an attorney. The law requires an attorney or bankruptcy petition preparer to give you a written contract specifying what the attorney or bankruptcy petition preparer will do for you and how much it will cost. Ask to see the contract before you hire anyone.

I am a debt relief agency. I help people file for bankruptcy relief under the bankruptcy code.

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6/06/06, 7:55 pm

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