Median Income and the Bankruptcy Means Test | California Attorney
Have you been told that you cannot file for Chapter 7 bankruptcy because you do not meet the eligibility requirements, known as the Chapter 7 Means Test?
If you are struggling with a financial crisis, get a second opinion regarding the Chapter 7 means test and your ability to file Chapter 7 bankruptcy. Chapter 7 bankruptcy has numerous benefits over Chapter 13 bankruptcy. Most importantly, Chapter 7 usually results in elimination of a higher portion of debt than Chapter 13 bankruptcy. You should not give up on your attempt to file Chapter 7 bankruptcy before you consult an experienced bankruptcy lawyer about the Chapter 7 means test.
At the consumer bankruptcy law firm of Dan Shay Law in San Diego, every day we help people realize that they meet the eligibility requirements of the Chapter 7 means test. To learn more about the benefits of bankruptcy for people facing unmanageable debt, contact our San Diego bankruptcy office for a free consultation.
Call 619-222-SHAY for a Free Consultation About the Chapter 7 Means Test
In most cases, you'll qualify for Chapter 7 bankruptcy if your net household income (adjusted for family size) is below the California statewide median. In 2009, the median household income in California was about $49,200 for a single person and about $65,100 for a two-person household. The Chapter 7 means test allows you to deduct the amount of payments on secured debts — typically, mortgage payments and car loans — from your gross income. To illustrate how the Chapter 7 means test works, a married couple without children can qualify for Chapter 7 if they together earn $91,000 but pay $2,200 each month for their mortgages and motor vehicles.
Thorough Financial Analysis for Chapter 7 Bankruptcy Eligibility
At Dan Shay Law, we thoroughly analyze clients' income, assets and debts to find all allowable deductions from gross income, to help financially stressed individuals meet the Chapter 7 means test. Additional expenses that may qualify as deductions include:
- Payments of federal, state and local taxes
- Mandatory retirement contributions
- Uniforms and union dues
- Term life insurance payments
- Court-ordered payments like alimony and child support
- Educational expenses for retraining and employment purposes
- Child care expenses
Receive Personalized Attention From a Knowledgeable Attorney
As a solo practitioner, San Diego bankruptcy lawyer Dan Shay has the freedom and flexibility to meet each client's unique needs. All clients of our law office work directly with a professional attorney throughout the bankruptcy process, not with a junior associate, paralegal, secretary or receptionist.
Schedule a free initial consultation today with attorney Dan Shay to learn more about the Chapter 7 means test.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.
