There are several different types of bankruptcy options for debtors in the United States. If the debtor has a very high income, the process of bankruptcy can be more complex.
This is often because high earners struggling with debts tend to be dealing with a higher amount of debt as well as a more comprehensive catalog of assets. In addition, qualification requirements can also mean that many high-income debtors do not qualify for certain bankruptcy Chapters that might seem the most appealing.
If you are earning a high income in the state of Maryland but you are currently struggling with debts, it is important that you look into all the Chapters that might be available to you. This article will discuss Chapter 7 and its suitability for certain high-income individuals.
When can high-income individuals qualify for Chapter 7 bankruptcy?
Many people with a high income believe that they do not qualify for Chapter 7, but they may be misunderstood. If your income exceeds the maximum cut-off for Chapter 7 bankruptcy, you may qualify for an income exemption. This can be achieved through the way that your debts are classified. If you can show that more than 50 percent of your debts are business-related, then you will qualify for this income exemption.
Why might Chapter 7 bankruptcy be the best choice for someone with a high income?
One of the key reasons why a high earner might want to file for Chapter 7 bankruptcy is because, in general, future income will be kept by the debtor, and not by the bankruptcy estate. The only income that will be held as part of the bankruptcy estate is certain property that is acquired during the first 180 days of the initial bankruptcy filing.
In addition, the pace of debt discharge tends to be much faster than other bankruptcy Chapters. The debtor may even be subject to a debt discharge within 30 to 60 days of the original filing.
If you are struggling with unmanageable debts as a high-income individual in the state of Maryland, it is important that you consider all options so that you can achieve the most lucrative solution.