Debt is a relative term. If you can’t keep up with the bills you currently have, then bankruptcy is always an option to get things under control.
Eligibility for bankruptcy relief has less to do with how much debt you owe and more to do with your own income and the median income where you live. If you make very little compared to the majority of people where you live, it’s likely that you will qualify for bankruptcy. Each state has it’s own Bankruptcy eligibility is determined by the Means Test. The means test qualifies your debt based on your location, how many are in your household, and your expense-to-income ratio. If you fail the means test, you can’t file for Chapter 7 bankruptcy, but you may still be eligible for Chapter 13 bankruptcy.
Some debts will not qualify for dismissal no matter how little you make or how much you owe. These include:
Support obligations, including child support and alimony
Rather than worrying about how much debt you have, evaluate the urgency of the need to pay back the debt you currently have, big or small. The decision to file for bankruptcy is more urgent if you have creditors suing you, garnishing wages, foreclosing on your property, or trying to repossess assets.
Over the past 34 years, the Law Offices of Christopher A. Benson has helped over 2,300 of Washington clients take control of their financial situation. We can review whether bankruptcy may help stop your garnishment and address your debts through a repayment plan. Sources: 11 U.S.C. § 362(a)–(d); U.S. Courts: Chapter 13 bankruptcy. If money has already been garnished, recovery may be possible in some cases, depending on the timing of the transfers, applicable exemptions and other legal requirements. A refund is not automatic or guaranteed. Sources: 11 U.S.C. § 547(b)–(c), (e)–(g); 11 U.S.C. § 522(g)–(i); 11 U.S.C. § 550(a). But you have to act quickly–call (253) 815-6940 for your free consultation, or email us today. Evening and weekend appointments available.
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