Find out if you can qualify for
an Everett Bankruptcy
Do I Qualify for Chapter 7 Bankruptcy?
There are essentially two steps to determine whether you qualify for Chapter 7 Bankruptcy.
Step #1: The Means Test
The U.S. Bankruptcy Code requires a "Means Test" to determine whether you may be eligible to file of Chapter 7 bankruptcy. If your income is below the median income in Washington State based upon your household size, you are usually eligible to file for Chapter 7 Bankruptcy.
However, if you earn more than the median income based upon your household size in Washington based, the amount of your mortgage and car payments, back taxes and child support due, daycare expenses and children's school expenses and other expenses are considered to determine under the “Means Test” to whether you may qualify for Chapter 7 Bankruptcy.
Under the Means test, the calculation of your household income is based upon a 6 month average of your gross monthly income to determine whether or not you are above or below the median income level.
In Washington State as of November 1, 2009, the median income for a single wage earner is $51,344; for a family of two, it is $64,158; $72,533 for three; and for four, $82,716. Add $6,900 for each individual in excess of 4.
Step #2: Disposable Income
If your income is below the state median income for your household size or you pass the Means test with above state median household income, you will probably qualify for Chapter 7 Bankruptcy. However, even if you pass the Means Test, you will still not qualify for Chapter 7 Bankruptcy if your monthly expenses are lower than average of you are no longer paying the unsecured and secured debts you wish to discharge in Chapter 7 Bankruptcy. If such cases if you have over $100 per month of disposable income to pay back part of your debts to unsecured creditors. Those situations usually occur in cases where a family is below the state median income, but they have a lower than average rent or mortgage payments, and little or no car payments. In your bankruptcy petition, you must list your “reasonable and necessary” household expenses
In cases where you are either below or above the state median income for your household size and have disposable income, typically in cases where you have lower than average household expenses, you will typically have to file a Chapter 13 Bankruptcy petition and pay back part of the debt to your unsecured creditors over a three to five year period.
You also cannot file for Chapter 7 Bankruptcy if you filed for Chapter 7 Bankruptcy within the past 8 years and received a discharge of your debts.
The bankruptcy attorneys at our law firm have years of experience analyzing the many factors necessary to properly calculate the Means test and also analyze your disposable income to determine whether you qualify for Chapter 7 bankruptcy.
Call The Everett Debt Doctors Today for a Free Confidential Attorney Consultation: (425) 953-4364.
Snohomish County bankruptcy lawyer David M. Lux represents individuals throughout the Great Puget Sound Region and Snohomish County, including Everett, Arlington, Mukilteo, Lake Stevens, Monroe, Mountlake Terrace,Granite Falls, Bothell, Snohomish, Marysville, Mill Creek, Lynnwood, Mukilteo, Duvall, and Stanwood, WA.