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Chapter 7 Bankruptcy Eligibility and Requirements
Chapter 7 bankruptcy is not available to everyone; there are certain qualifications you must meet in order to be eligible for Chapter 7 relief. Learn more here.
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If you want to file for Chapter 7 bankruptcy, you must pass the means test. The means test looks at your income, and perhaps your expenses and debts, to determine whether could afford to pay back at least some of your debts. If so, you won't be allowed to use Chapter 7; instead, you will have to use Chapter 13 if you want to file for bankruptcy.
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When You Don't Have to Take the Means Test in Chapter 7 Bankruptcy
Most individuals who file bankruptcy under Chapter 7 or Chapter 13 must complete a means test, which calculates your ability to repay creditors based on your last six months' income and certain allowed expenses.
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Business Debts in Chapter 7 Bankruptcy
Filing for a personal Chapter 7 bankruptcy doesn’t eliminate the debts your business owes as a separate entity. But it can wipe out your liability for any business debts you are on the hook for personally. Read on to learn more about what happens to business debts in Chapter 7 bankruptcy.
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Consumer v Nonconsumer Debt for the Chapter 7 Means Test
Find out which debts are consumer and which are nonconsumer for purposes of the bankruptcy means test.
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What Is Current Monthly Income for the Means Test?
Congress created the “means test” to determine if you qualify to file for Chapter 7 bankruptcy. Whether you qualify for Chapter 7 depends largely on what the means test calculates as your “current monthly income.”
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What to Do If You Fail the Chapter 7 Bankruptcy Means Test
In order to qualify for Chapter 7 bankruptcy relief, you must pass something called the means test. The means test looks at your income and expenses to determine if you can repay a certain portion of your unsecured debts to your creditors. If you can, then you don't qualify for Chapter 7 bankruptcy.
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Expenses That Help You Pass the Bankruptcy Means Test
If your income exceeds the median income for a same size household in your state, you will need to use your expenses on the means test to qualify for Chapter 7 bankruptcy. While the means test limits the amount you can deduct for many expenses, you can use the actual amounts you spend for certain expenses.
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Household Size and the Bankruptcy Means Test
If you want to qualify for Chapter 7 bankruptcy, you must pass the bankruptcy means test. Your household size plays an important role on the means test and can have a significant impact on whether or not you pass. Read on to learn more about the different approaches bankruptcy courts use to determine
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Will My Mortgage Help Me Pass the Means Test?
If you have a mortgage on your home, your mortgage payment may help you qualify for Chapter 7 bankruptcy by making it easier to pass the Chapter 7 means test. This is because on the means test you can deduct your mortgage payment and payments on other home loans, as well as payments towards mortgage
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Can I File for Chapter 7 Bankruptcy If I Am Unemployed
There is no bar to filing for bankruptcy if you are unemployed. Like all Chapter 7 bankruptcy filers, you'll have to pass the means test in order to file for Chapter 7. The lower your income, the easier it is to pass.
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The Car Ownership Deduction on the Bankruptcy Means Test
If you file for bankruptcy, you must take and pass the means test in order to qualify for Chapter 7 bankruptcy. In Chapter 13 bankruptcy, the means test helps determine the amount of your monthly plan payment. In the means test you deduct certain expenses from your income -- the remaining amount determines
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Adjustment of Means Test for Spouse Filing Bankruptcy Alone
To be eligible to use Chapter 7 bankruptcy, you must pass the means test: a calculation that looks at your income, and perhaps your expenses and debts, to determine whether you could afford to pay off at least a minimum amount of your debts. If so, you will not pass the means test -- and will not be
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Marital Adjustment: Types of Allowable Deductions for the Means Test
Married debtors who are filing for bankruptcy without their spouse can use the marital adjustment deduction to qualify for Chapter 7 or reduce the amount they pay to unsecured creditors in Chapter 13 bankruptcy.