What is the maximum income threshold for filing for Chapter 7 bankruptcy? 5 Answers as of October 20, 2010

I want to find out if I am eligible to file for Chapter 7 bankruptcy based on my income level. What is the limit for filing?

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Law Offices of Marc Grossman
Law Offices of Marc Grossman | Lisa Robinson
There is no per se income threshold. Under the Means test, your gross income averaged over the past 6 months will be compared to the median income for your state and household size. Please note that the median income does get adjusted from time to time.

If your gross income averaged out over the past six months and multiplied by 12 to get the annual is less than the median income for your household size in your state, then there is no presumption of abuse and you qualify under the Means test.

However, if you make more than the median income, this does not mean you don't qualify for Chapter 7. Based on your deductions including taxes, charitable contributions, court ordered support payments, secured debt payments, etc. you may be able to pass the Means test with no presumption of abuse in filing a Chapter 7 case.

Chapter 7s are for people with a limited income where after deducting his or her ordinary living expenses, there is nothing left over to repay debts. If a person does have excess income at the end of the month, then that person is potentially looking at a Chapter 13 bankruptcy, which is a structured repayment plan typically for 5 years.

There may also be some additional considerations such as payments to relatives and assets that need to be considered prior to filing a Chapter 7 case.
Answer Applies to: California
Replied: 10/20/2010
Greifendorff Law Offices, PC
Greifendorff Law Offices, PC | Christine Wilton
Qualifying for chapter 7 bankruptcy is based both on gross monthly income and the number of people in the household. We need to know how many people live in the household with you before we can answer your question.
Answer Applies to: California
Replied: 10/19/2010
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
That is a very complicated question and one that cannot be answered without knowing all your particulars. In short, you need to consult with a bankruptcy attorney who can perform a means test analysis and other tests to see if you are eligible for Chapter 7. The numbers change every couple of months and are based on where you live, your household size and other factors.
Answer Applies to: California
Replied: 10/18/2010
Diefer Law Group, P.C.
Diefer Law Group, P.C. | Abel Fernandez
It depends on the size of your family. You should be able to find the guidelines on line or you need to consult an attorney.
Answer Applies to: California
Replied: 10/18/2010
The Ellingson Law Group
The Ellingson Law Group | Matthew Ellingson
You need to find a local attorney in the jurisdiction you are living in to actually answer your question. The income level is different per state, and it changes based on the number of people living in your household.

Furthermore, even if you are over the limit, you may still qualify for a Chapter 7, but the answer is not necessarily quantifiable if your income is over the debt limit by several thousand dollars.
Answer Applies to: Arizona
Replied: 10/18/2010
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