The United States Trustee’s Office has published new income limits for filing chapter 7 bankruptcy. Effective November 1, 2017, the annualized gross income cutoff in Wyoming will be $55,831 for a single person with no children at home. (That is down over $4,000 from the $59,971 limit for single filers before November 1).
The threshold amount goes up with family size ($68,533 for a married couple, $70,868 for a household size of three, $90,270 for a family of four – see U.S. Trustee Program website.) After November 1, a single dad with three children can have annualized gross income of up to $90,270 and still be eligible to file chapter 7. Above these income limits (which are measured by the prior six months’ income not counting the month in which the filing is done) an individual must either file a chapter 11, a chapter 13 or not at all.
The real question, of course, is whether filing for bankruptcy is a good idea. The most common reasons that people file for bankruptcy are divorce, a serious medical event, loss of job or reduced wages. Wage garnishment is often a triggering event because it results in the immediate loss of 25% of net pay, and filing bankruptcy stops wage garnishment.
Another factor in deciding whether to file bankruptcy is what the debtor gets to keep. Most bankruptcy filers get to keep their vehicle, clothing, household goods, personal effects and three firearms and 1,000 rounds of ammunition per firearm up to 3,000 rounds. Other things the trustee may take away, such as sporting equipment, 4 wheelers, utility vehicles and the like.
© 2016 Clark Stith
We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.