Lemoore, CA Bankruptcy Law Firms & Lawyers

Not necessarily. First, you have to calculate your current monthly income. Then you must apply your CMI to the appropriate median income figure. The bankruptcy law defines your CMI as your average monthly income received during the six-month period that ends on the last day of the month preceding your filing date whether or not the income is taxable. When including wages or other sources of income, you must include the gross amount, not the net income you actually receive after deductions from taxes and other with holdings are made. To compare your current monthly income to the family median income for your state, you'll need to multiply your current monthly income by 12. If your CMI is less than or equal to your states family median income you aren't subject to the means test in a Chapter 7 bankruptcy filing. If your current monthly income as calculated above exceeds your states family median income then you must look at other factors. If the majority of your debt is consumer debt (meaning it doesn't come from operating a business, tax debts, or debts for personal injury or property damage you caused to someone else), you'll have to take whats called the means test. Under this test, you can't file for Chapter 7 bankruptcy if, after certain expenses are deducted, your remaining income would exceed $10,950 when projected over a five-year period ($182.50 per month) or would be equal to at least $6,575 over five years ($110 per month) and would pay at least 25% of your unsecured, non-priority debts over that same period. Unsecured, non-priority debts include credit card and department store charge card bills, medical bills, utility bills, and student loans. If your remaining income would be less than $6,575 when projected over the next five years, you will pass the means test and can file for Chapter 7 if you meet the other eligibility requirements.

HOA dues are nondischargeable. If you want to surrender the townhouse then the HOA must satisfy the pre bk filing amount due through the sale of the townhouse. The post filing amounts coming due will still be your responsibility until the townhouse is sold.

Generally, you are able to keep your house in bankruptcy as long as you are able to continue making your payments. I recommend consulting with a bankruptcy attorney to discuss the specific details of your situation.