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So it turns out that if you make more than some specified amount, determined by the average for your state, you can no longer have your debts absolved by bankru
by e1ven 17y ago
So it turns out that if you make more than some specified amount, determined by the average for your state, you can no longer have your debts absolved by bankruptcy.
Best you can do is enter into a 5+ year payment plan, where they garnish your wages automatically.
- tptacek 17y agoThat's a 5 year payment plan supervised by a judge, and at its conclusion if your reorganization fails, your debts are resolved. Most reorgs fail. Even after the BK "reform", the US still has a generous bankruptcy system compared to the EU.
- phony_identity 17y agoYes, the new bankruptcy system tries to eliminate that option for people making more than the average. It's an extremely bad reform, as it hits higher income people trying to take risks and build businesses. Here's what to do if you're caught in that: decide to declare bankruptcy, then figure out a way to establish a six month period with your income below your state's average. Quit your job, stop paying yourself a salary from your company, whatever. If you've got to feed a family, make a mortgage, pay for your kids college tuition and otherwise support an above state average lifestyle for people you love... I don't know. Consult a good bankruptcy lawyer, and if they don't have a solution for you, ask them directly for a recommendation of a lawyer who will help you to beat this system.