Considering bankruptcy: minimum debt amount and income calculation
May 3rd, 2016 by Anonymous
Looking to claim bankruptcy. However, I am now unemployed with no income coming in. My spouse is supporting the household. Is his income considered my income if I file?
The debt is all my own, none of it is joint with my spouse. However, the amount is less than ten thousand – is there a minimum debt amount required to file bankruptcy?
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May 03, 2016 at 12:24 pm, Doug Stuive, CA | Trustee | CIRP said:
When you file for personal bankruptcy the trustee will generally look at the household income, but they will not consider his income as yours. The trustee will also calculate your share of that household income, which currently is ‘nil’. When you attend a free consultation with a trustee, this is one of the areas they will go into more detail about so you know how your income and family size can affect the duration and cost of your bankruptcy filing.
The minimum amount you must owe before declaring bankruptcy is $1,000.00. With $10,000 in debt you do meet this part of the basic criteria to file a bankruptcy. Again, a trusted debt advisor will be able to help you consider all options and can make sure that you have considered all factors before deciding to actually file an assignment in bankruptcy.