Do I Qualify for a Chapter 7 Bankruptcy? The Means test
The “means” test determines whether you make too much income to qualify to file. The test compares your average monthly income to the median income in the state where you live. If your average income exceeds the median income for your household size, then it is possible you do not qualify to file for Chapter 7 Bankruptcy. Even if your income is exceeds the median income for your household size, you still may be eligible to file for Chapter 7 depending on other variables such as expenses for rent, child support, or alimony.
For instance, if you are in Elizabethton, Johnson City, Kingsport or the surrounding areas in Northeast Tennessee, your income limit is set by the census standards for the household in Tennessee. Read below for a quick determination about whether you qualify for a Chapter 7. If you need an affordable bankruptcy attorney to quickly guide you through the means test, let me know.
Median Income Tables for Northeast Tennessee and Adjacent States
What Happens if I do not pass the means test?
If your average income is greater than the median income, then you may not be able to file for Chapter 7. However, the Bankruptcy Code still allows for other debt relief options. Individuals can repay a portion or all of their debts back in a flexible way by filing a Chapter 13.
If you do not have any income left after paying your expenses and other obligations such as child support or alimony, you may still be able to file for Chapter 7 even if you do not pass the means test. If these are your circumstances, you may wish to see an attorney to find out if you are still eligible to file for Chapter 7 even without passing the means test.
Take the test and if you are in Elizabethton, Johnson City, Kingsport, or surrounding areas, come to the office for an affordable bankruptcy attorney that can guide on your options as to file a Chapter 7 or Chapter 13 bankruptcy, or if you need bankruptcy help or help dealing with creditors in other ways.