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, your average monthly household income must first be calculated. To calculate, you must add up the previous 6 full months household gross income, and then divide by 6 to find the average (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 divide by 6. If you were to file December 2nd, you would add up your household’s income for June through November, then divide by 6.
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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