Ask a Bankruptcy Lawyer January 2007

If you have a general question about filing bankruptcy, you can submit your questions here. Please note that all questions received are answered by a real bankruptcy attorney, however, the answers given are only meant to be general in nature and are not meant to replace legal advice.

If you are outside of California and need an attorney, click here to find an attorney. Again, none of the information found on this site is meant to replace the advice you can obtain through a qualified legal professional, in your own state (as certain things differ by state in bankruptcy), who has taken the time to look at the specifics of your case before answering.

Does Income Get Averaged from the Last Six or Twelve Months Prior to Filing?

Q: "In determining whether a debtor can file under chapter 7: is it true that the average income for a husband and wife over the six month period immediately prior to when the case is heard is what is used to determine "average monthly income", not the average income for a twelve month period, and that it is this average amount over 6 months that is compared to the median monthly income in your state for a family of a given size? "

Signed: Confused on Timeframes, California


A: Yes, income RECEIVED in the 6 CALENDAR months prior to filing the bankruptcy case is used in determining the annual average which is compared to the median for the geographic area where the case is filed. That is one of the factors used in determining eligibility.



Can I Wipe Out Student Loan Debts with Bankruptcy?

Q: "I am 24, working part time for 3 years, have been out of college for 3 years and I have a 22,000 college debt. I’ve considered filing bankruptcy to relieve myself of the huge burden of this debt. I didn’t graduate, and am finding it hard to keep my head above water with this loan. I’ve heard rumors it wouldn't work due to new laws for bankruptcy. I think I may have even signed a paper Sallie Mae saying that my only relief is death. Is it possible to claim bankruptcy and get my student loan debts wiped out?"

Signed: In a Hole, Washington


A: With a few exceptions, student loans have never been dischargeable in bankruptcy. That has not changed under the new laws. The only way they are dischargeable is if you can prove "undue hardship" which is rarely granted. You should consult with an attorney in your area to assess your options in that regard.

Ask a Lawyer Archives:

+   Is your median income the only factor in deciding if chapter seven is allowed?
+   Can the IRS come after back taxes of a discharged debt years later?
+   Do I list original debtors, collection agencies or both on my bankruptcy filing?
+   Is bankruptcy an alternative to home buying investments gone bad?
+   How is income determined when deciding if you are eligible for bankruptcy?
+   Can filing bankruptcy wipe away student loan debts?
+   Two houses and backed up credit card payments; Is bankruptcy best?
+   What counts as legitimate living expenses when filing bankruptcy?
+   Questions about using a bankruptcy lawyer vs. filing Pro Se
+   Is a back child support payment considered income when filing bankruptcy?
+   Will claiming bankruptcy affect the co-signer on my car?
+   Does one spouse filing bankruptcy affect the couple's joint tax return?
+   I can't pay an accident judgement, can bankruptcy get rid of it?
+   How are joint marital assets affected by a wife's bankruptcy filing?
+   Do I have to claim my 401K withdrawl as income?
+   Can I sign over a car to my daughter prior to filing?
+   Chapter 13 in danger of being dropped but would like to save the house
+   Debt collector calls may force us into bankruptcy
+   Husband claiming bankruptcy, but the wife has good credit
+   Need tips to find a credit counseling agency