Chapter 7 bankruptcy is an option for more filers than many people realize.
There are two ways to determine your eligibility for Chapter 7, the income test and the means test.
For the income test, you’ll look back at the last six months of earnings, average the figure, and multiply that by 12 to calculate your approximate annual earnings.
If that number is below the median household income in your state, then you are eligible to file Chapter 7.
If you calculate a figure that’s above the median household income for your state, you may still be eligible.
The means test is a way of determining your obligations versus your income in order to establish the amount of discretionary income you have.
If you have insufficient surplus income to pay back your debt, you can file under Chapter 7.
The attorneys at Zelenitz, Shapiro & D’Agostino can help. Call us today at 718-599-1111 for a free consultation.