Many people who file for bankruptcy have struggled for debt for many months or years. The decision to seek bankruptcy protection is often not made hastily and is the end of a long struggle. In that time, many people look to a second job or extra work in order to try to get their debt under control. Unfortunately, this extra income could make filing Chapter 7 bankruptcy very difficult, if not impossible. If you intend to see bankruptcy protection with a St. Louis Bankruptcy Attorney, it may be wise to quit that extra job in the months preceding a bankruptcy filing.
Previous Six Months’ Income Measured by a St. Louis Bankruptcy Attorney
While it might sound extremely counterintuitive to actually make less money while trying to get out of debt, it might be what a person needs to do in order to qualify for Chapter 7 bankruptcy. The means test will look at your previous six months when it comes to income and if that extra money pushes you above the median for Missouri (currently set at $40,994 for a single filer) you may be forced to file Chapter 13. A St. Louis Bankruptcy Attorney can explain this process to you and let you know where you stand as far as Missouri’s median income.
However, a person cannot simply quit their jobs and then file Chapter 7 with many assets. Because the trustee will look at the totality of the circumstances, a person who has substantial assets will not be able to simply take a six month vacation and then discharge their debt. But if you are someone who is struggling, working less might actually benefit you.
If you are working two jobs and still struggling to make ends meet, speak with a St. Louis Bankruptcy Attorney. At The Westbrook Law Group, we will work with you to get a fresh start under Chapter 7 bankruptcy, allowing you to get your bills under control and live debt and stress free.