Legal Question in Bankruptcy in Illinois

Income limits for Chapter 7

My income is about $135K but my current debt payments exceed my takehome by about $1500 per month. One of my secured debts is a home which has decreased subtantially in value (due to market changes) and is in a town about 100 miles from me due to a job change. The current loan exceeds the value by about $30K. I am renting a very small house. I would have ''disposable income'' if relieved of the house and one car payment. I have not yet filed for bankruptcy, but will I automatically be refused for chapter 7? If so, would I have the option of keeping the house under a chapter 13 if it would reduce the disposable income? Thanks.


Asked on 3/17/02, 10:25 am

2 Answers from Attorneys
Bruce Buckrop Bruce Buckrop

Re: Income limits for Chapter 7

You need to lay all the financial cards of your income, expenses and debt load and debt structure, in front of attorney experienced in bankruptcy to see how 707(b) "too much income" would fit in your case.

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Answered on 3/17/02, 4:42 pm
Charles Dobra Charles Wm. Dobra, Ltd.

Re: Income limits for Chapter 7

The decision as to whether you should file depends on many factors, however, one factor is whether you wish, for some reason, to save the house you own. E.g., if the value of the mortgages exceeds the value of the house/land, then I would bail out of the mortgage(s) on the house/land. Discuss this with a bankruptcy lawyer. GOOD LUCK!

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Answered on 3/18/02, 10:44 am


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