Can I file for Chapter 7 Bankruptcy if I live in Midtown Manhattan and make over $100,000 a year?
I am a Manhattan Bankruptcy Attorney and am getting this question more and more from people considering filing for Bankruptcy all over New York City. So can someone in Manhattan making more than $100,000 file for Chapter 7 Bankruptcy? Yes. What? Yes.
The first Bankruptcy test you’ll go through in New York, or any state for that matter, is the Median Income test. It is that scary test you keep hearing about. You know, the one your friend tells you about when he/she says “No they have this new test now. If you make over a certain amount, you can’t file.” Like most things your friends say, they are only partially correct. The current Median Income limit in New York for a family size of one is $$46,523. For a family size of two (much different than a joint filing or marriage), the amount is about $57,000.
So New York Bankruptcy Attorney man, how in the world can someone filing for Bankruptcy in New York who earns over $100,000 possibly file for Bankruptcy in New York? The short answer is that Bankruptcy laws allow you to take certain deductions when deciphering if you are qualified to file. You can take standard IRS deductions that your trusty New York City Bankruptcy Attorney knows about. You can deduct certain childcare expenses. Youc an deduct garnishments dealing with taxes. You can deduct your actual mortgage payments. You can deduct vehicle ownership expenses. You can deduct health care expenses. You can deduct food expenses. In other words, if you’re earning more than that median income test, you still absolutely have a shot for filing for Chapter 7 Bankruptcy in New York City.
Rather than explaining each and every deduction (and inadvertently putting you into a coma in the process), I would recommend you speak with a New York City bankruptcy lawyer and he/she, if they are worth their weight, will TAKE THE TIME to sit down with you and explain all of this things to you. This is a great field where attorneys are able to help people in financially stressful situations (and emotionally, physically, etc.) Make sure you are completely confident about your options.