If you earn more than the median income in your state, the state applies a means test to decide whether you are eligible for bankruptcy test under Chapter 7. In the means test, the court applies a complex formula to decide whether your monthly disposable income is less than $117.91
• If your monthly disposable income is less than $117.91, you are eligible to file bankruptcy under Chapter 7.
• If your monthly disposable income is between $117.91 – 195.41, the court will decide what percentage of your unsecured debt they could pay off using disposable income over a five year period. If your monthly disposable income would not pay at least 25% of your unsecured debt over five years, then you are eligible to file Chapter 7.
• If your monthly disposable income exceeds $195.41 per month, you must file bankruptcy under Chapter 13.
Consult an experienced bankruptcy lawyer of your area to help you calculate whether or not you will be able to file bankruptcy under Chapter 7.
