Chapter 13 Bankruptcy Form 22C
Form 22C is a critical element in your chapter 13 bankruptcy filing. Under the new bankruptcy law your income must be under the state median income for your state in order to quality for a chapter 7 bankruptcy which wipes away all your debts instantly and permanently.
If your income is too high, you'll end up being forced into a chapter 13 bankruptcy which leaves all your debts intact but gives you additional time to pay them all off. You'll get either three or five years of payments.
This form will determine which kind of personal bankruptcy you get so pay careful attention to it and the information you provide.
If you don't qualify for a chapter 7 deal, you may be able to request a three years chapter 13 plan which will avoid you living in financial slavery for five long, long years.
Some bankruptcy filers find to their dismay that they don't qualify for the much more desirable chapter 7 bankruptcy due to their income being too high. Because the law holds that such a person can pay off their debts given enough time, they're forced into the much less enjoyable chapter 13 deal.
But here's where it gets very ugly. It's possible for someone to have too much income for a chapter 7 deal and not enough to qualify for a chapter 13 extended payment plan. Be sure to ask your lawyer going in if there's any chance you'll end up in this bankruptcy purgatory. Do what you can legally do to avoid this kind of situation.
