We want our clients to be able to earn as much as possible, and part of our job is to make sure that any income they have is protected.
The amount of income debtors have can affect their case, depending on the chapter they are filing under and their income. In Chapter 7 consumer cases, income is factored into what is know as the means test. The means test compares household income to the median household income for a household of the same size. The resulting calculation may determine whether or not these debtors are eligible for discharge of debt under Chapter 7.
However, there are almost always ways that a debtor may pass the means test or make it completely inapplicable. Rarely would it be advisable to lower an income because of the means test.
In Chapter 13 cases, income is one of the factors used to determine how much should be paid to unsecured creditors. There are many factors that go into this determination, however, so we would rarely want to see a reduction in income in this case either.
If you feel you need to file bankruptcy but are concerned your income is too high, the best advice we can give you is to keep us fully informed about your employment and income status. We can then identify and help you solve problems before they ever arise.