The inquiry we hear the most from people is “do I qualify for chapter 7 bankruptcy?” While the bankruptcy laws are thought to be accessible to everyone, they can be confounding, and the new bankruptcy laws have changed how courts determine if someone is eligible to file for ch 7 and ch 13 bankruptcy. So, do you qualify for ch 7 bankruptcy?

Individual - Only individuals can file a chapter 7 bankruptcy. You can be married or single. If you are married you can file with or without your spouse. Your spouse’s income will have to be considered even if you are not filing together in order to see if you qualify for chapter 7.

Income - The chapter 7 means test will check if you have disposable income available to pay some or all of your debts. If your income is beneath the state median for your family size, as set 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. The means test will then compare your living expenses to the IRS standard allowances that have been set for where you live. You may also be able to include extraordinary expenses you may have due to medical and other conditions that will have to be explained to the bankruptcy court.

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 leftover income is between $6000-$10,000 then you have to determine if you can pay at least 25% of your unsecured debt, if you can’t then you can file ch7. 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 bankruptcy information for chapter 7 and 13, and DoItYourselfBankruptcyForms.com where you can find free bankruptcy forms online.