Search Site
Menu

What if Your Income Is Too High for Chapter 7 but Your Debt Is Too High for Chapter 13?

For individual debtors, Chapter 7 and Chapter 13 are the most common personal bankruptcy filings in Georgia and likely in every other state as well. Both types have certain eligibility requirements, and in some cases, people may not qualify for either.

Chapter 7 eligibility requires petitioners to pass a means test that considers their income in relation to the average household income for their area. Chapter 13 eligibility requires petitioners to have regular income, and their secured and unsecured debts must fall below a certain level. Therefore, an individual with very high income and very high debt may not qualify for either program.

While Chapter 11 bankruptcy is more commonly associated with businesses, it is technically an option for individuals:

  • Non-business Chapter 11 filings are fairly rare. Between March 2012 and March 2013, there were only 1,398 in the United States and only 17 in Georgia.
  • Chapter 11 is perhaps the most complex type of common bankruptcy and has the potential to take the longest. It should usually be avoided for individuals if other options remain open.
  • Chapter 11 requires a great deal of cooperation from creditors, while the court and the trustee usually keep creditors in check in Chapter 7 and Chapter 13.

Chapter 11 for individuals is sometimes a possibility, but it’s only beneficial in a very narrow set of circumstances. Our Georgia bankruptcy attorneys take the time to help clients understand the full range of options available to them so they can choose the one that is best for their particular circumstances.

Leave a Reply

Your email address will not be published. Required fields are marked *

Videos
Our Attorneys
Client Reviews
  • google
    5.0/5.0

    Jeff Fields and Laura Everett were wonderful! It was hard but they were so helpful and with me every step of the way. They answered every question and were very accessible. I hope noone has to experience this road, but if you do, try Jeff Field & Ass...

    Read more

    Becky Sharpe

  • google
    5.0/5.0

    I had my concerns about filing initially, but Jeff walked me through the process and with his calm demeanor, made this process not at all as daunting as I initially thought it would become. The process flowed effortlessly and Cassie (a BIG shout out ...

    Read more

    Charita Willis

  • google
    5.0/5.0

    Due to medical expenses and serious physical problems I had to file bankruptcy. I was nervous and really depressed about the whole situation. I called Jeff Field & Associates and felt at peace after talking to a lawyer. I decided to go with them and ...

    Read more

    Sherri Ellis

  • google
    5.0/5.0

    Outstanding work!! They were great from day 1!!! Thank you

    Read more

    L B

  • google
    5.0/5.0

    They Get the Job Done Trust me Right Away Fast Luv them

    Read more

    Gary Phifer

See all reviews
Contact us

Please fill out the form below and one of our attorneys will contact you.

Quick Contact Form