Bankruptcy Calculator

Bankruptcy Calculator

The Bankruptcy Calculator helps you evaluate your financial situation and determine the potential for bankruptcy.

By entering details about your assets, liabilities, income, and expenses, you can understand your net worth, non-exempt assets, and assess whether you might qualify for bankruptcy.

This tool offers a preliminary assessment and should be used alongside professional legal advice.

Plain Text Formulas

1. Net Worth Calculation: Net Worth = Total Assets - Total Liabilities

2. Non-Exempt Assets Value Calculation: Non-Exempt Assets Value = Non-Exempt Assets

3. Monthly Surplus/Deficit Calculation: Monthly Surplus/Deficit = Monthly Income - Monthly Expenses

4. Potential Bankruptcy Outcome: Typically assessed by a bankruptcy attorney, but significant monthly deficits and high non-exempt assets may suggest potential for bankruptcy.

Step-by-Step Guide

Example:

Consider the following financial details:

• Total Assets: $200,000

• Total Liabilities: $150,000

• Exempt Assets: $50,000

• Non-Exempt Assets: $100,000

• Monthly Income: $4,000

• Monthly Expenses: $4,500

1. Calculate Net Worth: Net Worth = Total Assets - Total Liabilities Net Worth = 200,000 - 150,000 = 50,000

2. Calculate Non-Exempt Assets Value: Non-Exempt Assets Value = Non-Exempt Assets Non-Exempt Assets Value = 100,000

3. Calculate Monthly Surplus/Deficit: Monthly Surplus/Deficit = Monthly Income - Monthly Expenses Monthly Surplus/Deficit = 4,000 - 4,500 = -500

4. Assess Potential Bankruptcy Outcome: With a monthly deficit of $500 and non-exempt assets valued at $100,000, there may be a potential for bankruptcy. Consult a bankruptcy attorney for a detailed assessment and advice based on your full financial picture.

Facts

• Net Worth:

  Indicates your overall financial standing by subtracting liabilities from assets.

• Non-Exempt Assets:

  Assets that may be liquidated in bankruptcy to pay off creditors.

• Monthly Surplus/Deficit:

  Shows whether you have excess income or a shortfall each month.

• Bankruptcy:

  The potential for bankruptcy is influenced by a combination of high non-exempt assets and a consistent monthly deficit.

FAQ

1. What is the purpose of this calculator?

• This calculator helps you assess whether you might qualify for bankruptcy based on your financial situation. It provides an overview of your net worth, non-exempt assets, and monthly financial balance.

2. How accurate is the potential bankruptcy outcome?

• The potential bankruptcy outcome is a preliminary assessment. For a definitive evaluation, consult with a bankruptcy attorney who can provide personalized advice based on a detailed review of your finances.

3. What are non-exempt assets?

• Non-exempt assets are those not protected by bankruptcy exemptions and may be subject to liquidation to pay off creditors in bankruptcy proceedings.

4. How can I improve my financial situation to avoid bankruptcy?

• Consider reducing debt, increasing income, cutting expenses, and seeking professional financial or legal advice.