An Illinois resident living in Will County or Joliet who is not behind on their bills but never feels like they are gaining any ground may consider filing for bankruptcy. However, many people assume that if you are not behind on your bills you either cannot file for bankruptcy, or filing for bankruptcy would not be advantageous for their situation. However this may not be the case.

Bankruptcy laws exist to help individuals struggling to pay bills. An Illinois resident who has stayed on top of his/her bills may still qualify. In order to file chapter 7 bankruptcy a person must pass the means test. The means test takes a person’s average income over the six months prior to filing and deducts that person’s monthly expenses from the income. What remains is disposable income. If the disposable income is too high, a chapter 7 is not likely.

However, while a high income may seem like a blockade to filing bankruptcy in Will County, Illinois without being behind on your bills, the more accurate way to determine an individual’s chapter 7 availability is to look at their debt to income ratio. A person who is not behind on their bills but has a sizeable debt compared to their average salary over the previous 6 months may find filing for chapter 7 advantageous.

Filing for bankruptcy can be a difficult decision for an individual or a family alike. If you or someone you know lives in Joliet or Will County Illinois who is not behind on their bills but may benefit from filing for bankruptcy contact Hamilton & Antonsen at 815.729.9220 to set up a free consultation.