If I hear that one more time I am going to scream. Ok, so usually what I hear is, “but <so and so> told me that I make too much money to file for bankruptcy.”
First of all, the only strictly true statement is that no one makes too much money to file for Bankruptcy.
What most people mean is that they believe that they make too much money to qualify for a Chapter 7 Bankruptcy filing. The problem with that statement is that qualifying for a Chapter 7 actually has more to do with what kinds of debt you have and what you actually spend your money on than it does with how much money you make.
The root of all of this misinformation is something called the Means Test. The Means Test was ostensibly created as a kind of gatekeeper for Chapter 7 Bankruptcy filings. I say ostensibly. I don’t think that was the real reason, but hey what do I know about politics and lobbyists paid by institutional creditors. The Means Test is an 8-page exercise in accounting trivia. It starts with income, then swings through expenses and certain kinds of debt. Having a problem passing the Means Test? Wait a few months to file and CHANGE THE THINGS YOU SPEND YOUR MONEY ON. Yep, it really can be that simple.
If you have been told that you make too much money to file for Bankruptcy and feel that you need to anyway, call a member of the National Association of Consumer Bankruptcy Attorneys for a second opinion.