One of the most popular questions we receive from clients is “do I qualify to file a ch 7 bankruptcy?” Bankruptcy courts and laws can be confusing to someone who hasn’t been through the process, especially discovering eligibility thanks to the new bankruptcy laws. So, do you qualify for ch 7 bankruptcy?
Individual - In order to file ch 7, you have to be an individual, businesses are not eligible. You can be married or single. You do not have to file with your spouse if you are married. If you file without your spouse you will still have to disclose their income in order to determine if you are eligible to file chapter 7.
Income - The chapter 7 means test will check if you have available income accessible to pay some or all of your debts. If your income is beneath the state median for your family size, as established by the bankruptcy guidelines then you are eligible for ch 7.
You can provide your living expenses to qualify if your income is above the median. Your living expenses will then be equated to standard allowances the IRS has set for housing, groceries and other normal expenses. Extraordinary expenses can also be included such as medical needs or special diets for health issues.
If you are left with over $10,000 in disposable income you cannot file a chapter 7 bankruptcy, but if it’s less than $6000 you qualify. If your income is inbetween those limits and you can’t afford to pay at least 25% of your total unsecured debt, then you can file chapter 7, but if you can afford to pay it, then you do not qualify. The new means test can be complicated if you make more than the median income, so it’s important to consult a bankruptcy attorney.
Guest Article Provided By: BankruptcyFormProcessing.com where you can find information on filing bankruptcy, and DoItYourselfBankruptcyForms.com where you can find free bankruptcy forms online.













