{"id":2832,"date":"2021-02-04T10:54:00","date_gmt":"2021-02-04T13:54:00","guid":{"rendered":"https:\/\/abogadosmaryland.cyberglobalnet.icu\/?p=2832"},"modified":"2021-07-24T12:21:55","modified_gmt":"2021-07-24T15:21:55","slug":"am-i-eligible-for-chapter-7-bankruptcy","status":"publish","type":"post","link":"https:\/\/abogados-maryland.com\/en\/am-i-eligible-for-chapter-7-bankruptcy\/","title":{"rendered":"Am I eligible for Chapter 7 bankruptcy?"},"content":{"rendered":"\n

Deciding whether to file for Chapter 7 or Chapter 13 bankruptcy can be difficult, as each option has its own advantages and disadvantages. Before you make your decision, you should know that not everyone is eligible for Chapter 7 bankruptcy. Only people that pass the bankruptcy means test will be eligible for Chapter 7 bankruptcy. Everyone else will only be eligible for Chapter 13 bankruptcy.<\/p>\n\n\n\n

What is the means test?<\/h2>\n\n\n\n

The bankruptcy means test<\/a> is intended for those with consumer debts to determine whether they have disposable income to put toward their debts. There are two parts to the test.<\/p>\n\n\n\n

Part 1: Is your household income below the state\u2019s median income?<\/h3>\n\n\n\n

First, the test determines whether your household income is below the state\u2019s median income using financial information from the past six months. If your income is below the median, you have passed the means test and will be able to file for Chapter 7 bankruptcy. According to the most recent chart published by the Department of Justice in 2020<\/a>, in Maryland, the median income was approximately $70,964 in households with one earner and $93,255 in households with two earners.<\/p>\n\n\n\n

Part 2: Is your disposable income low enough?<\/h3>\n\n\n\n

While most debtors pass the first part of the test, there are some that do not pass but still want to file for Chapter 7 bankruptcy. In such cases, you will be allowed to deduct certain necessary or \u2018allowable\u2019 expenses from your income to determine your disposable. Standardized expenses, as well as some of your actual expenses may be deducted. Some of these expenses may include:<\/p>\n\n\n\n