There are many misunderstandings about who is eligible to file bankruptcy. Credit card companies have contributed to the misunderstandings by deliberately misleading customers about changes that were made to bankruptcy laws in October of 2005.
While the new bankruptcy laws have imposed some new requirements, most people with significant debt problems are eligible to file Chapter 7 bankruptcy. If you aren't eligible to file Chapter 7 bankruptcy, you can still obtain debt relief by filing Chapter 13 bankruptcy.
At the law firm of Gross & Patterson, LLC, in Pittsburgh, our lawyers offer a free initial consultation to determine which forms of bankruptcy protection are available to you.
Chapter 7 Eligibility and the Means Test
Before you can file Chapter 7 bankruptcy, you must pass what is known as a means test. As long as you earn less than the Pennsylvania median income for your household size for the past six months, you can file Chapter 7 bankruptcy.
In Pennsylvania, median incomes are the following:
- $44,897 for a single person
- $53,706 for a family of two
- $67,113 for a family of three
- $79,916 for a family of four
- $87,416 for a family of five
Even if you earn more than the median income, you may be eligible to file Chapter 7 bankruptcy based on your disposable income under certain circumstances. Child support payments, as well as other certain factors may affect your situation.
If you earn too much money to file Chapter 7 bankruptcy, you may be eligible for Chapter 13 bankruptcy. Even if you are eligible for Chapter 7 bankruptcy, Chapter 13 may would be a better option if you have significant assets that wouldn't be protected in a Chapter 7 filing or if you are behind on your mortgage and want to save your house.
For More Information About Chapter 7 and Chapter 13 Eligibility
To schedule a free initial attorney consultation to find out if you are eligible to file bankruptcy, call 412-567-4732 or fill out the contact form on this website.
