What is the income limit to file chapter 7 bankruptcy? The Means test
In Chapter 7 Bankruptcy, the “means” test determines whether you make too much income to qualify to file. The means test is the formula that determines whether you reach the income limit. If your average income exceeds the median income limit 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 limit for your household size, you still may be eligible to file for Chapter 7 Bankruptcy depending on other variables such as expenses for rent, child support, or alimony.
Use the Means Test Calculator to Determine if you Qualify
What Happens if I do not pass the means test?
If you surpass the income limitations, 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 exceed the income limitations of the means test. If these are your circumstances, you may wish to see an attorney in Tennessee to find out if you are still eligible to file for Chapter 7 even if you surpass the income limitations on the above basic means test.