Do You Need to File? Are You Eligible to File?
The determination of whether or not you are eligible to file is complicated and depends upon:
- Your gross household income in the six months before filing (the Median Income Test)
- Your allowed monthly expenses subtracted from your six month average monthly gross income (the Means Test)
- Your prior bankruptcy filing history
- Your domicile (where you lived) in the last 90 days
Chapter 7 eligibility depends on the following factors:
- Determine your average monthly gross income during the six month period ending on the last day of the calendar month before the month in which you intend to file your bankruptcy case.
- Compare your income to the median income of household of the size of yours in Utah.
- If your household gross income is less than the median income of a household the size of yours in Utah, then you are probably eligible to file a Chapter 7 case — but not always.
- If your household gross income is greater than the gross income of a household the size of yours in Utah, you must then apply the Means Test.
- The Means Test requires you to subtract from your gross monthly household income certain allowed expenses. After subtraction, you may still be eligible to file a Chapter 7 — but not always. If not, you may be eligible to file a Chapter 13 — but not always.
Financial Discovery to Determine Course of Action
As you can see, answering the question "Am I eligible to file?" is not as simple as it appears at first glance.
At The Law Office of Paul Toscano, PC, our Salt Lake City Chapter 7 and 13 bankruptcy attorneys know how to apply these "tests" and other eligibility rules.
We also know the red flags, such as a large drop in income immediately preceding the bankruptcy filing, that may affect your eligibility.
Our analysis of your financial picture begins before we have our initial meeting. Our clients fill out a short initial meeting form that gives us a snapshot of your current situation. With this information, we can tell you during the first free appointment:
- If your are eligible for bankruptcy under Chapter 7, 13, or 11
- Whether bankruptcy is the best course for you and your family
- What your estimated bankruptcy fees and costs will be for your case
- Answer your most pressing questions
Failed the Means Test? We Can Help
Remember: If you fail the means test for a Chapter 7 bankruptcy, you may qualify for a Chapter 13 or a Chapter 11 if you are a business owner. We can help guide you to the determination, based on your financial picture and your long term goals. Contact our bankruptcy lawyers by calling 888-509-3683 or by sending us an e-mail*.
*Please understand that we DO NOT become your lawyers just because you accessed our web site, or emailed us, or even attended a first free appointment with us. We do not become your lawyers until you sign a written contract with us that spells out the legal services we will provide and the estimated fees and costs you will pay.
WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE.
