San Benito County, CA Bankruptcy Law Firms & Lawyers

If the question is whether you may file under Chapter 7, there is a first step 'rule of thumb' which is simple, and a further complex set of calculations which take a bit more effort. First, if your household income is below the median for your size household in your state for the past year, you can file a chapter 7 without objection. The approximate median income for a household of 1 is $43,200; for a household of 2, about $58,500, and more for larger households. If your income is above the applicable median, then you must complete a 'means test,' which applies certain allowances set in some instances by the IRS, and in others by executive agencies in your state. The allowances are not unreasonable, and a good many people with incomes not much above the median can still qualify for ch. 7 Good Luck.

When you buy jewelry using a store card, the store typically will retain the right to repossess the jewelry. Now that the bankruptcy is over, you can return the jewelry and owe nothing or you can pay the store what you agree it is worth. Just as you cannot keep a car without paying on the financing, your jewelry secures the debt.

When a person files bankruptcy it involves all assets and liabilities. A chapter 13 payment plan can be proposed to pay secured debts such as mortgages and vehicles. However, if the debtor does not have a contractual connection with the property that is secured, then the plan will not cover it.