Absolutely, you can still file for bankruptcy as a high-wage earner, but the type of bankruptcy you may qualify for and the conditions of your bankruptcy will depend on various factors, including your income, expenses, and financial situation.
If you have a substantial income and assets, you may not be eligible for Chapter 7 bankruptcy, which allows for the discharge of unsecured debts without a repayment plan. In such cases, Chapter 13 bankruptcy is a common alternative. Under Chapter 13, your income and expenses are closely examined, and a structured repayment plan is developed. You'll make monthly payments to the court, which are based on your excess income over necessary expenses. This repayment plan typically lasts for a period of 3 to 5 years.
However, it's essential to note that eligibility for bankruptcy is not solely determined by your income. Your living expenses, which can include a high mortgage, multiple car payments, educational expenses, and other necessary costs, are also taken into account. The bankruptcy court evaluates not only what you earn but also what it costs you to maintain your standard of living.
Before making a decision, it's highly advisable to consult with a bankruptcy attorney who can assess your specific financial situation, provide guidance on the type of bankruptcy that suits your circumstances, and help you understand the implications and requirements of the chosen bankruptcy chapter. They will work with you to create a strategy that aligns with your needs and objectives, given your high-income status and debt situation.