Can you make too much money to file Chapter 7?
Under the Bankruptcy Code, anyone who makes more than the median income in their state must take the means test to determine if they qualify for Chapter 7 bankruptcy.
Those whose means test results prove that they don’t have any discretionary income after all of their bills are paid can file Chapter 7 bankruptcy..
What qualifies you for Chapter 7?
You must pass a “means test” to qualify for Chapter 7 filing. The means test examines financial records, including income, expenses, secured and unsecured debt to determine if your disposable income is below the median income (50% lower, 50% higher) for your state.
What is the maximum income for Chapter 7 in Florida?
If your total monthly income over the course of the next 60 months is less than $7,475 then you pass the means test and you may file a Chapter 7 bankruptcy. If it is over $12,475 then you fail the means test and don’t have the option of filing Chapter 7.
Can you still file Chapter 7 if you fail means test?
The means test presumes that low-income debtors can’t pay back creditors and therefore, aren’t abusing the system by filing for Chapter 7 bankruptcy. However, if your income is above the median, you don’t automatically fail, either.
Can you be denied Chapter 7?
The rejection or denial of a Chapter 7 bankruptcy case is very unusual, but there are reasons why a Chapter 7 case can be denied. Many denials are due to a lack of attention to detail on the part of the attorney, errors made on petitions or fraud itself.
What is the income limit for Chapter 13?
Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual’s unsecured debts are less than $394,725 and secured debts are less than $1,184,200.