How do I know if I qualify for a Chapter 7 bankruptcy?

To determine if you qualify for Chapter 7 bankruptcy, you must first calculate your income. If your monthly income is below the median income of California, then you likely qualify for Chapter 7 bankruptcy. You can find the median income for California on the website of the U.S. Trustee Program. In addition to determining if your income is below the median, you must also pass a “means test.” This means that if your income is above the median for California, you will still be able to qualify for Chapter 7 bankruptcy if your average monthly income is below a certain amount. The amount is determined by subtracting certain expenses such as rent, mortgage, utilities, and child care from your current monthly income. If your income is below this amount, you will likely qualify for Chapter 7 bankruptcy. Finally, it is important to note that Chapter 7 bankruptcy is designed to discharge your eligible debts. This means that you will not have to pay back all of your debts. However, there are certain debts, such as student loans, that cannot be discharged through Chapter 7 bankruptcy. In summary, if you want to determine if you qualify for Chapter 7 bankruptcy, you need to calculate your income, compare it to the median income for California, and pass a means test. You also need to be aware of which debts are eligible for discharge through Chapter 7 bankruptcy.

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How do I know if I qualify for a Chapter 7 bankruptcy?

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