You must undergo a "means test" to qualify for Chapter 7 bankruptcy. This means your income and expenses are examined to see how they compare to the standard for your area as set by the IRS.
For example, if you earn less than the median income for a family of your size in your state, you can file for Chapter 7 bankruptcy. However, if your income from the last six months is greater than the median income, and you can pay at least $6,000 over five years or $100 a month, toward your debt you can't file for Chapter 7. You must file for Chapter 13 instead.
The median incomes for families of various sizes are as follows:
Family Size Median Income
(# of family members)
1 $43,456
2 $52,433
3 $61,517
4 $74,558
5 $82,058
6 $89,558
7 $97,058
8 $104,558
9 $112,058
10 $119,558
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