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Posts Tagged ‘income’

Falling Income

In Uncategorized on October 19, 2011 at 9:40 am

Household incomes are shrinking. Over the last two years average income dropped more than 6 percent. The median income now stands at $49,909. If you look at income since the start of the recession in 2007, income has dropped nearly 10 percent. That is the largest drop in income in several decades.

The reason wages are falling? People who lost jobs during the recession have taken pay cuts in order to get hired again. They average 17 percent less income in their new jobs.

News on the job front is not much better. Unemployment remains over 9 percent. The average time a person remains unemployed averages 40 weeks, the longest in more than 60 years.

If you are experiencing financial difficulties, you are not alone. Bankruptcy offers protection of your wages and assets from creditors. Give me a call if you need help.

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How Much Can You Earn And File Chapter 7?

In Uncategorized on November 11, 2010 at 9:50 am

To qualify for chapter 7 bankruptcy, you must prove you cannot afford to make payments on your debts. Bankruptcy law presumes that if your income is low enough you can receive a chapter 7 discharge of debts. The latest chart of annaul income looks like this:

Annual Income By Family Size

KY $36,999 (family of 1), $44,353 (2), $51,046 (3), $62,739 (4)

OH $40,091 (family of 1), $50,491 (2), $59,275 (3), $71,453 (4)

*Add $7,500 for each additional person in the family.

If, for example, you have a family of four in Kentucky and earn under $62,739, you should qualify for chapter 7. Everyone must file a monthly budget showing monthly expenses. The court examines the monthly expenses to determine if you truly cannot afford to pay back part of your debts.

If your income is more than amounts listed above, you have to show the court you can’t afford to pay back even part of your debts. You can do it, but you must persuade the court that your circumstances are exceptional. If that is not possible, I recommend filing a chapter 13 banrkuptcy. With chapter 13, you ask the court to approve a monthly payment on your debts

Thoughts On An Economic Recovery

In Uncategorized on September 15, 2010 at 3:02 pm

Is the economy going to recover anytime soon? Don’t look to the middle class to help. In a word, people are tapped out. Consider the following: since the 1970’s, income for the average worker has not kept up with inflation. That means sons are earning less than their fathers. Meanwhile, he costs for necessities like health care, energy, and education continue to rise. If you are struggling to keep your head above water, this is probably the reason.

The growth in earnings went mainly to those at the top. In the 70’s, the top 1% of earners had an 8% share of the nations income. Today 23% of the nation’s income goes to the top 1%.

So don’t look to the middle class for increased spending to fuel an economic recovery. They have their hands full just paying the bills.