bankruptcy median income florida
Bankruptcy-Please clarify if a “Fresh Start” Is Possible with new regulation?
IT’S MY UNDERSTANDING THAT I COULD GET A FRESH START WITH BANKRUPTCY IF MY INCOME IS UNDER THE MEDIAN INCOME FOR MY STATE(Florida)-(my income $24.500-2006) and IT WILL HELP ME RESTABLISH A PAYMENT PLAN FOR PAST DUE EDUCATION LOANS AND CAR PAYMENT?
….I’M HAVING MAJOR MEDICAL PROBLEMS…..I NEED TO INVEST ALL MY EXTRA INCOME IN TREATING MY CONDITION.
A person who has not filed chapter 7 within the past 8 years may do so if doing so is not an “abuse”. A case is “presumed abusive” if you make more than the median income unless you have deductions from “current monthly income” which leaves you with inadequate “disposable income” to pay a formula amount to unsecured creditors over a 5 year or 3 year period (depending on the the case). But in your case, you make a lot less than the median income. So you are eligible for chapter 7. You have to get credit counseling first. Think it over and use this remedy wisely as you won’t get another chance to do so for 8 years. And of course, your student loans are unaffected. You would have the right to discharge your car debt, but then you would lose your car.
