If you are considering bankruptcy as one of the options to help with your financial hardship, the first step is to take a Means Test which will determine your eligibility for Chapter 7 bankruptcy.
You need to compare your household income to the state’s Median Income. If your current household income falls below Median Income you are automatically presumed to pass the means test and qualify for Chapter 7.
If you household income is above, you will need to complete a Means Test which will calculate your income and expense information. The information will be applied in determining if you are eligible for Chapter 7 or Chapter 13 bankruptcy.
1 Member Household – $47,414.00
2 Member Household – $59,631.00
3 Member Household – $70,151.00
4 Member Household – $83,614.00
5 Member Household – $91,714.00
6 Member Household – $99,814.00
7 Member Household – $107,914.00
8 Member Household – $116,014.00
9 Member Household – $124,114.00
10 Member Household – $132,214.00
Keep in mind that just because you can file a Chapter 7 does not mean that you should. Generally, a Chapter 7 bankruptcy is considered a better option if you do not want to keep your secure property, such as home with a mortgage. You should consult with an attorney to determine your options and the best course to take.