Can I file for bankruptcy if my income is above the state median?

There is absolutely nothing to keep someone from filing for bankruptcy even though their income is over the state median. Being over the state's median income means one of two things: having to fill out the long form of the chapter 7 means test or filing under chapter 13.

Chapter 7 Means Test Long Form

Anyone who is looking to file and is under the state median skips a majority of the means test. They go straight to the bottom and sign. Someone who is over the median but feels that they have nothing left at the end of the month can fill out the long form of the test. This involves filling out allowable expenses with a few wild cards. If it can be proven that there is no money left at the end of the month for paying debts, then the petitioner can proceed in chapter 7 with no presumption of abuse.

When there is money left over, even after completing the long form, then the debtor must file for chapter 13. This lasts 36-60 months, depending on the situation. A specific amount is agreed upon with the trustee and paid every month in order to keep the case from being dismissed.

Get Legal Help

When bankruptcy looks like it is a good idea, it is time to hire a lawyer. They can assist you with which chapter to file under, as well as representing you through the process from start to finish.