Chapter 7 Bankruptcy Means Test

The Chapter 7 Bankruptcy Means Test

Not everyone can erase debts in Chapter 7 bankruptcy. Find out how to pass the means test and qualify for a Chapter 7 bankruptcy discharge.

Do I Qualify for Chapter 7 Bankruptcy?

To qualify for Chapter 7 bankruptcy, your disposable income must be low enough to pass the means test.

Who Is Exempt From Taking the Bankruptcy Means Test?

Find out who is exempt from the Chapter 7 means test and how to verify the exemption by completing the Statement of Exemption from Presumption of Abuse Under §707(b)(2) form.

Bankruptcy for the Self Employed: Verifying Your Income

A self-employed person can file a Chapter 7 or Chapter 13 bankruptcy, but the debtor must prove average income for the six months before the filing of the case, as well as provide up to four years' worth of yearly income documentation.

Qualifying for Chapter 7 Bankruptcy if Your Income Is High

Filers whose income is higher than the state median will qualify for Chapter 7 bankruptcy if, after deducting allowed expenses, insufficient income remains to make reasonable creditor payments through a Chapter 13 repayment plan.

What Expenses Can Help You Pass the Bankruptcy Means Test?

Certain family and household expenses might help you pass the means test for Chapter 7 bankruptcy.

What Are the Differences Between Credit Counseling and Debtor Education in Bankruptcy?

With a few rare exceptions, you must get credit counseling before you file for bankruptcy, and complete a debtor education course in financial management afterward. Here are the details.