Who Is Eligible For Chapter 7 Bankruptcy In California? | Jackson Bankruptcy Attorney Explains

https://bankruptcy-info.com/

The Law Offices Of Diane Anderson
6611 Folsom Auburn Blvd
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Folsom, CA 95630
United States

665 New York Ranch Road
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Jackson, CA 95642
United States
(209) 223-3300

You must show that you are eligible for Chapter 7 bankruptcy by passing the means test.
A means test assesses your income and determines if it is low enough to file Chapter 7 liquidation bankruptcy.
The means test is a formula designed to ensure higher wage earners cannot completely wipe out their debts through Chapter 7.
Instead, high wage earners must file Chapter 13 to reorganize and repay their debts.
The Chapter 7 means test assesses your income and allows you to deduct reasonable expenses, such as your mortgage.
First, your current monthly income is calculated by averaging your income over a six month period.
Then, you determine your disposable income by deducting expenses for your health and welfare.
All expenses deducted from your income must be “reasonable” according to state and local averages.

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