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If I Make Over $100,000 a Year, Can I Eliminate Credit Cards Debts in Bankruptcy?

Many High Income Families on Long Island are Eliminating Debts with Chapter 7 Bankruptcy by Passing the Means Test
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Many high-income families on Long Island can eliminate credit card debt in Chapter 7 bankruptcy by passing the means test
 
Written by Craig D. Robins, Esq.
 
The recession has driven many hardworking Long Island families seeking debt relief to my office, and a good number of the them have family incomes that are in the six-figures.
 
Believe it or not, many of these families qualify for Chapter 7 bankruptcy relief and are able to eliminate all of their debts. 
 
The Means Test Actually Helps Some People Become Eligible for Bankruptcy
 
When Congress toughened the bankruptcy laws in 2005, they sought to make it more difficult for some people to qualify for Chapter 7 bankruptcy.  They did this by requiring anyone seeking Chapter 7 bankruptcy relief to demonstrate eligibility by passing the means test — a bunch of calculations designed to weed out those who appear to have the ability to pay something to their creditors.
 
The Means Test Helps Long Island Homeowners
 
In preparing the means test, debtors can deduct certain expenses.  The greater the deductions, the easier it is to qualify.  The amount that a debtor can deduct for living expenses is very limited unless they own a home that has a mortgage.  In that case, they can deduct the full amount of the mortgage. 
 
Since mortgages on Long Island are usually several thousand dollars a month, this often has the effect of enabling a family  with a six-figure income to qualify for Chapter 7 bankruptcy.  Since so many Long Island consumers own homes with high mortgages, many of them qualify for Long Island Chapter 7 bankruptcy filings.
 
There Are Other Factors Which Make It Easier to Qualify for Chapter 7 Bankruptcy on Long Island
 
There are many other variables in the means test that enable consumers with high incomes to qualify.  Having many children or dependants, at least two cars with loans or leases, high childcare expenses, high insurance expenses, or high monthly religious donations are all factors that facilitate qualifying for Chapter 7 bankruptcy filing.
 
Experienced Bankruptcy Counsel Can Assist Long Island Consumers with Deciphering the Bankruptcy Means Test
 
In the past few months I have filed a number of Chapter 7 bankruptcies for Long Island families who had incomes in the range of $100,000 to over $150,000.  Knowing exactly how to guide the client through the intricacies of the means test can mean eliminating many tens of thousands of dollars of credit card debt through bankruptcy with a Chapter 7 filing. 
 
If you are a high-income earner on Long Island, there is a good possibility that you may qualify to eliminate all debts through Chapter 7 bankruptcy if you can utilize the right deductions on the means test.  Feel free to contact our office for a free confidential appointment.
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