Question: I hope I don't make too much money to file bankruptcy because my debts are truly getting out of hand. Since my divorce I've racked up a ton of debt paying for my car, my house and making child support and alimony payments. I make a good salary, but it's just not enough to keep up with all of the bills that I'm facing.
I got divorced after being married over 25 years. And since my wife never worked, I have to pay alimony and I'm paying child support for 3 kids, who all go to private schools. The payments for my BMW and Infiniti are high and the mortgage payment for my house is a large amount.
Even though I make about $250,000 per year, I keep falling behind and getting into more and more debt. I've pretty much used all my credit from my American Express card and my VISA card. I owe them a lot of money and the interest rate is high.
Basically I just need some debt relief fast. But since I make decent money, I'm very concerned about being able to file. I need to keep my house and my car no matter what. Do I make too much money to file bankruptcy?
J.S. in Woodstock, GA
Answer: As bankruptcy attorneys, we represent for many "high earners" and "high net-worth" individuals. Even people who make large amounts of money can find themselves battling financial difficulties that need to be addressed. Just like other Americans, their debts can become burdensome and they too are entitled to seek relief under the bankruptcy laws.
Just because someone has a high income does not mean that he or she can't file bankruptcy. Even if someone is not eligible to file a chapter 7, they can still very likely file a chapter 13. If someone makes too much money or has assets that are too great, they can almost always utilize a chapter 13.
A chapter 13 will enable someone who can't file a chapter 7 to get debt relief. Under a chapter 13, the debts are put into a plan and a percentage of the debt is paid back over 5 years. Once a chapter 13 or a chapter 7 is filed, your creditors cannot sue you, garnish your wages, levy on a bank account or even contact you. In short, the harassment must end immediately when a bankruptcy is filed. And a bankruptcy filing will stop a foreclosure or car repossession.
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