Expert: Terry Leeders - 5/29/2009

Question
We are trying to file bankruptcy.  One lawyer said we made too much money.  Between my husband and I we earn approximately 45,000.  Our credit card debt exceeds over $50,000.  Can't make the payments, only minimum and the interest keep growing.  Is this true about the earnings we make.  We are from Pennsylvania. Thank you.

Answer
Each debtor is subject to the means test calculation looking at income received for the 6 months before a case is filed, then compare you to the median income for your family size and location.  After the test, if there is positive income, then you will not be qualified for chapter 7, but would need chapter 13, and would pay back a portion of your debts, based on that disposable income.