Whether or not you qualify to file for Chapter 7 bankruptcy will depend a lot on your income. The “means test” is a method used to determine whether or not you have the resources to pay off your debts in some kind of payment plan over time. If your income is over the median for a household of your size, you must pass this test in order to qualify for Chapter 7. Your disposable income, what you have left after deducting your basic expenses, also factors in. Standards for deductions are set by the IRS, and definitions can get tricky. This is why it’s wise to hire a bankruptcy attorney like David P. Gardner in Santa Rosa, California.
Chapter 7 Requirements in Santa Rosa, California
In Santa Rosa, you qualify for Chapter 7 bankruptcy if your income falls below the median income for your household size. If this is the case, you will not have to take the means test. For any bankruptcy case filed after May of 2018, the median income for one person is $54,787, and for a household with more than one person, it starts at $73,162. The disposable income must be calculated by subtracting your expenses. Bankruptcy matters can get complicated with disposable income, leaving you in a grey area. A bankruptcy attorney in Santa Rosa can assist you and answer any questions you may have.
Schedule a Consultation to Discuss Bankruptcy in California
To find out whether or not you qualify for Chapter 7 bankruptcy in Santa Rosa, schedule a free consultation with the David P. Gardner law firm. Our expert bankruptcy attorneys will assess your financial assets and guide you through the calculations that will determine whether or not you meet the criteria for this type of bankruptcy. Call us at (707) 658-4460 today.