Chapter 7 is the quickest, easiest, and cheapest bankruptcy available. Someone who has been struggling for years trying to pay off credit cards with high interest rates, will be able to eliminate all those credit cards in only 3 months with a Chapter 7 bankruptcy. They key is to verify if you qualify for this type of relief? There are 2 important factors in determining whether someone qualifies, income and assets.
Income is often the key factor in determining whether someone qualifies for Chapter 7 credit card relief. Under bankruptcy laws there are specific income limitations to determine who qualifies. The logic here is that if you can prove that you do not make enough money to be able to pay for basic necessities such as rent, food, phone, etc., and at the same time pay credit card bills, then bankruptcy laws allows you to completely wipe out your debts in only 3 months! That is quite a relief and can completely change someone’s life.
Federal laws provide the following income guidelines to qualify, depending on whether you are single, married, or married with kids/dependents. Here are the current income limitations depending on your household, these figures change periodically, and also change depending on the state/county where you live:
State of CALIFORNIA (Contra Costa County) (Median income)
Size Annual Monthly
1 Earner $57,962 $4,830
2 People $77,167 $6,431
3 People $84,003 $7,000
4 People $96,813 $8,068
5 People $105,813 $8,818
6 People $114,813 $9,568
So, if you are below the income limitations you qualify automatically for this credit card relief. Even if you are slightly above these limits, you may still be able to qualify based on your expenses, that is what an experienced bankruptcy attorney will be able to do for you.
Assets are the second determining factor in qualifying for credit card relief. If you own a home in California, the property must not have more than $75,000 in equity if single, or no more than $100,000 in equity if married.
Also, even if you do not own a home, you may not be able to file for Chapter 7 if you have more than approximately $30,000 in your regular checking/savings account (this is for California). Vehicles are usually not a problem unless it is a fully paid off luxury vehicle. Retirement plans can be fully exempted and you may qualify for credit card relief in a Chapter 7 bankruptcy even with more than 1 million dollars in a qualified retirement plan.
Every Chapter 7 case is different and there are other variables that come into play in determining whether someone qualifies for Chapter 7 credit card relief. But if income and assets are not an issue, most likely Chapter 7 will be a great option for you. Call bankruptcy attorney Mario Blanco to see if you qualify. Chapter 7 Bankruptcy attorney in Hayward/ Richmond/ Concord/ San Jose/ Fremont/ Oakland.