Many families in Walnut Creek, Concord, Antioch and Brentwood have two incomes – good jobs – yet somehow there is just never enough money to make ends meet. I am a father of two kids, so I know about braces, field trips and the clothes they like but then never wear. No one item is that expensive but together it all adds up. For many families, the trouble comes with just one additional expense. It might be an expensive car repair, an unwanted dental emergency, a traffic ticket or a desperate call from a family member needing money. It’s always something. Does that sound familiar? Frustrated and confused, people assume they must be doing something wrong. Honest people turn to credit cards or payday loans to get through to the next month, and that’s the beginning of an ugly cycle of charging and paying. Credit cards and payday loans quickly become another monthly bill.
Most people assume that having two good jobs means they will not qualify for bankruptcy. These same people also want to protect their credit rating and assume chapter 7 bankruptcy will ruin it. Both of these assumptions are incorrect in many cases.
High Income – The law considers a person’s or couple’s income to determine to what extent they qualify to have debts forgiven. The formula is derived from IRS guidelines and is complicated. Suffice it to say, a family of four with a six figure income (over $100,000 gross) will usually qualify for bankruptcy. Surprised? It’s true! There are many factors such as car payments, house payments, and the cost of health insurance that directly impact qualifying for bankruptcy. If you feel like you are in a financial hardship, chances are the law will agree.
Credit rating – Good credit is essentially the ability to get a loan if you apply for one. Good credit is a history of paying bills on time combined with adequate monthly income to afford additional loans. Once your payments become delinquent you no longer have good credit. If you are burdened with large debts, you will not have good credit until the existing debts are dealt with. Bankruptcy is not good for your credit but it does let you start over and begin building good credit.
What’s Next – How long will payday loans and credit cards hold you down? Are you ready to get the facts about bankruptcy?
At the Law Office of Michael Primus we have helped hundreds of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy. If you live in Contra Costa County and have debt problems, contact us for a free in-office consultation. We have offices in Walnut Creek, Antioch and Hercules.