Sacramento Bankruptcy Means Test

The Sacramento Bankruptcy Means Test is used to determine if you may file Chapter 7.  If you do not qualify to file Chapter 7 then you may be eligible to file a Chapter 13.  The first step of the test is to compare your gross income for the six full months prior to the month you file Bankruptcy.  Compare your average monthly Gross Income  (pay before any deductions)  to the following.

1 Person     $3,997
2 Persons    $5,387
3 Persons    $5,887
4 Persons    $6,600
6 Persons    $7,225
7 Persons    $7,850
8 Persons    $8,475
Add $625 for each person above 8 in the household.

Median income is the first test.  If your income is greater than the Median income you may still qualify to file Chapter 7 bankruptcy.  There is a second phase of the test takes into account your obligation to pay your secured debts, taxes, insurance, retirement contributions, union dues, and other job related expenses.  This is a very complex calculation and a competent bankruptcy attorney will be able to help you determine if you are eligible to file Chapter 7.

If you do not qualify to file Chapter 7 bankruptcy then you may be eligible to file Chapter 13 bankruptcy.  Many times Chapter 13 is more advantageous than a Chapter 7.  Chapter 13 bankruptcy uses similar means test data to determine the Plan length, either 3 or 5 years and your Disposable Monthly Income (DMI).  Disposable monthly income is the income that is available to pay your unsecured debts.  The determination of DMI is very complex and you should consult with a Sacramento bankruptcy attorney to ensure your Chapter 13 bankruptcy is filed correctly.

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