Am I eligible to file a Chapter 7 case?

A chapter 7 debtor must complete a Statement of Your Current Monthly Income (Bankruptcy Form 122A-1).

To be eligible to file a Chapter 7 case, your current monthly income, as calculated on Bankruptcy Form 122A-1, may not be higher than the state median income.  If your current monthly income is higher than the state median income, it may be determined that you can repay a level of unsecured debt and the filing of a Chapter 13 case is appropriate. If you still choose to file a Chapter 7 case, you must also complete and file a Chapter 7 Means Test Calculation (Bankruptcy Form 122A-2) to determine if the presumption of abuse arises. You must also check box 2 on 122A-1 indicating that you will complete 122A-2.

Note 1: You may be exempt from the "means test" if you are a disabled veteran or because you do not have primarily consumer debts. If you believe you are exempt, you must check the appropriate box at the top of Form 122A-1 and complete and file with your petition a Statement of Exemption from Presumption of Abuse Under 707(b)(2) (Bankruptcy  Form 122A1-Supp). 

Note 2: The National Guard and Reservists Debt Relief Act of 2008 provides for a temporary exclusion from the bankruptcy means test.  The amendment to §707(b)(2)(D) is effective as of December 19, 2008.If you believe you are entitled to this temporary exclusion, you must check the appropriate box at the top of Form 122A-1 and complete and file with your petition a Statement of Exemption from Presumption of Abuse Under 707(b)(2) (Bankruptcy Form 122A-1Supp).

Click here for more information on Means Testing.