The “Means Test’ has two parts in determining if you qualify for a Chapter 7:
In the first part you automatically qualify if your household (family) income for the prior six (6) months is below the average from your state and county.
However you may still qualify for Chapter 7, if:
In the second part of the Means Test, you are able to deduct for secured and necessary expenses such as child support, child card, food, utilities, medical, telecommunication, auto, insurance, etc. If you cannot afford a reasonable payment in a chapter 13 after these deductions, you still qualify for a chapter 7.
That means that many people will still qualify for a chapter 7 bankruptcy even if they make slightly over the average income if they have high necessary or secured expenses. Naturally, it would be essential to have proof in the form of documentation.
Stephen M. Dunne, Esq.
Dunne Law Offices, P.C.
1500 JFK Blvd, Two Penn Center, Suite 200
Philadelphia, PA 19102