Is there an income limit for a person to file bankruptcy?
Full Question:
Answer:
In order to qualify for Chapter 7 bankruptcy, you must compare your "current monthly income" against the median income for a household of your size in your state. If your income is less than or equal to the median, you can file for Chapter 7. If it exceeds the median, you must pass "the means test".
The means test is designed to calculate whether you have enough disposable income, after subtracting certain allowed expenses and required debt payments, to make payments on a Chapter 13 plan. The means test involves subtracting certain allowed expenses and debt payments from your current monthly income. If the income that remains after these calculations is below a certain amount, you can file for Chapter 7.