How Does Income Affect Your Bankruptcy Filing?
Income is one of the biggest factors in determining whether you can file for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 will clear most or all of your debts if you don’t have a reasonable income to pay off your debts even under a payment plan. Chapter 13 will reorganize your debts into an affordable payment plan based on your level of income. So when you file for bankruptcy, like this man did, the Court will analyze your ability to repay and schedule a payment plan for you.
But if you lose your job, and thus, the income, it will greatly affect that plan and may even qualify you for Chapter 7. The story linked to above is a real-life demonstration of that.
If you’re struggling with bankruptcy Knoxville, don’t take this fight alone. We can help. Call us for a free consultation today and we’ll guide you through the bankruptcy process.
