In determining Ch 7 Bankruptcy Qualification, you must past the “means test.”
To determine whether one passes the means test, and therefore qualifies for a Chapter 7, their household income must first be calculated. To calculate, you must take the previous 6 full months household income, and multiply it by 2. (Do I have to include my spouse’s income if they are not filing?) For example, if you were to file November 16th, you would add up your household’s income for May through October, then multiply it by 2. If you were to file December 2nd, you would add up your household’s income for June through November, then multiply it by 2.
Next, you take the amount calculated and see if it is less then the allotted amount for your household size.
Household of 1 – $50,179
Household of 2 – $61,125
Household of 3 – $73,262
Household of 4 – $90,531
*Add $8,400 for each individual in excess of 4.
These figures are often updated, and the most up to date chart can be found here.
Now, if you do not pass on this phase 1, there are 2 other phases that you can go through that require much more in depth qualification. They include looking at other wage withholdings and household expenses, then comparing them to a different set of qualifying figures. Success here are not as common, but yet, can be done. If you need to qualify under phase 2 or 3, I highly suggest contacting us, or another bankruptcy lawyer to assist you with that process.
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