Oakland, CA Bankruptcy Law Firms & Lawyers

There are situations where this income level could still be worked into a Chapter 7. First, to qualify for filing under Chapter 7, the following are considered: Does your income fall below the Georgia Median. If yes, then you are not required to complete the means test and you may be eligible to file under Chapter 7 of the bankruptcy code. Your household size is a large factor. If your income is above the Georgia Median, then you must complete the Means Test. This is a spreadsheet that takes your income and compares it to local and national standards for specific expenses to determine whether or not you should have disposable income remaining to pay creditors. If your disposable income is within a specific amount, then you may again qualify to file a Chapter 7 bankruptcy. However, if your disposable income is above that threshold, then it is unlikely you will qualify to file a Chapter 7. Even if your income is below the Georgia Median and your disposable income as computed by the Means Test is below the threshold, you must still complete schedules I and J. These schedules look at your actual income and expenses. Again, based on your situation, the court will look to see if you have any disposable income to pay creditors. You do not have to have a zero or negative amount in monthly disposable income to qualify under Chapter 7, but the less you have remaining available would be a good indicator that you may qualify for a Chapter 7. Another consideration is the amount of assets you have available. This alone does not mean you would not qualify to file a Chapter 7 bankruptcy, but if your allowable expenses are less than your available assets, then you may not want to file a Chapter 7 - since there is a good chance a Trustee would look to liquidate any assets available in excess of your exemptions. An issue also arises if you are behind on your home and other secured debts. While you may qualify for a Chapter 7 and being behind on your secured debts would not keep your case from being discharged, there is not provision in a Chapter 7 to cure those arrearages. Another caveat, if the majority of your debt is considered business debt, then the means test would not come into play.