What is the maximum allowable income on filing chapter 7 bankruptcy? 12 Answers as of July 09, 2015

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The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Depends on your expenses, dependants, etc, you should discuss your case with a local attorney.
Answer Applies to: New York
Replied: 7/9/2015
Ronald K. Nims LLC | Ronald K. Nims
It varies depending on how many people live in your household and which state you live in.
Answer Applies to: Ohio
Replied: 7/9/2015
R. Steven Chambers PLLC | R. Steven Chambers PLLC
There is no maximum as such. The Means Test requires that your household income be less than the median income for a family of your size in the county in which you live. If it's above that there is a presumption that you should be in Chapter 13 but that presumption can be overcome.
Answer Applies to: Utah
Replied: 7/9/2015
Charles Schneider, P.C.
Charles Schneider, P.C. | Charles J. Schneider
There is no such thing.
Answer Applies to: Michigan
Replied: 7/9/2015
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
There is none. If your income exceeds the median average then you calculate the long form of the means test to see if you can file without triggering a presumption of abuse.
Answer Applies to: California
Replied: 7/9/2015
    Garner Law Office
    Garner Law Office | Daniel Garner
    Generally, if you earn or receive more than the median income in your geographic area for your household size, you may be required to file chapter 13 instead of 7. The income statistics are published by the U.S. Department of Justice U.S. Trustee Program, who get the statistics from the Census Bureau. The data were last updated on May 15, 2015. The DOJ/UST also publish living expense statistics which may be relevant if you are over the median income. Those data are used in the "long form" means test to determine if a typical household in your area would have any disposable income after basic living expenses. You would be well advised to get legal counsel if you discover that you are over the median, because the calculation of your disposable income gets much more complicated.
    Answer Applies to: Oregon
    Replied: 7/8/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    There is no maximum income. However, you must provide some rather detailed financial information on a 'Means Test,' and if you have more than about $195 per month in 'disposable income,' the Court can tell you that if you want the benefits of bankruptcy you must file under Chapter 13.
    Answer Applies to: Wisconsin
    Replied: 7/8/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    This is a common misconception. There is no maximum income to be eligible to file Chapter 7 bankruptcy. Instead, there is the Means Test, which is a preliminary determination of whether or not someone is eligible, and the GOOD FAITH TEST. You can fail the Means Test and have earnings far and above the Median Income if you meet the good faith test of showing that after paying just necessary living expenses, there is not enough left to pay even 25 per cent of the debt over a 5 year period.
    Answer Applies to: Nevada
    Replied: 7/8/2015
    Tokarska Law Center
    Tokarska Law Center | Kathryn U. Tokarska
    There is no income limitation per se because income on its own doesn't show the whole story. Generally speaking, the first question is whether the income is above the median, which triggers something called a Means Test. Then you perform the Means Test by deducting from income expenses that have been identified as "reasonable and necessary " to arrive at a disposable income number. See 11 USC Section 707(b)(2). You can imagine that someone who has been ordered by state court to pay child support or has significant health issues and consequently higher healthcare needs would not be in the same position as someone who doesn't. Under some limited circumstances an individual may be exempt from the Means Test. The interpretation of what are "reasonable and necessary expenses" is based on statute and case law where particular expense have been previously challenged in a particular jurisdiction. The interpretation of statute may be different in one jurisdiction from another. For some expenses (for example, whether voluntary retirement savings are considered a reasonable and necessary expense) there may be more uniformity while other expenses may remain in a gray area where arguments can be made for and against it. The initial calculation and if applicable means testing is performed in Form B22A. The words contained in the form itself are limited and may not bring in relevant statutes, your Trustees' position, or case law to help fill it out properly. I cannot in good conscience recommend you take on this task on your own particularly if your income is above the median triggering the means test. In addition to understanding what is and isn't a reasonable and necessary expense it's important to understand what is "current income" and properly calculate that number before moving on to entering deductions.
    Answer Applies to: California
    Replied: 7/8/2015
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    What is the maximum allowable income on filing chapter 7 bankruptcy? That varies by state and is subject to certain deductions. You can find the amount for you state by searching for "United State Trustee" on the Internet. Searching their web site for the information. Bear in mind that is only part of the calculation. If you are over the amount allowed for your state you might want to consult a lawyer to figure out what deductions apply to you.
    Answer Applies to: California
    Replied: 7/8/2015
    John W. Lee, PC
    John W. Lee, PC | Kim A. Lewis
    That depends on the size of your household and the location where you live.
    Answer Applies to: Virginia
    Replied: 7/8/2015
    Stittleburg Law Office
    Stittleburg Law Office | Bernd Stittleburg
    There is no minimum or maximum. Qualifications for filing Chapter 7 depend on your gross income over the six months preceding the filing of a case.
    Answer Applies to: Georgia
    Replied: 7/8/2015
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