Do I Qualify For Chapter 7 Relief? The Means Test

Your current monthly income (“CMI”) is defined in the bankruptcy code as income you have received during the previous six months before filing a bankruptcy petition. If you file your case in March, the relevant months will be September, October, November, December, January, and February. If you add up all of your gross income for those months from your payroll stubs (not including payroll deductions), and divide by six, you will arrive at CMI.

Multiply your CMI by 12, and if that figure is less than the following amounts, you should be qualified for Chapter 7 relief.

Household Size 1: $37,171

Household Size 2: $49,813

Household Size 3: $54,573

Household Size 4: $66,487

Relief is still available if your income is higher than these amounts, but we would need to take a closer look at your household expenses to determine what kind. Additionally, if your income has gone up or down during the past 6 months, it is important to consider the timing of your filing by consulting an experienced bankruptcy attorney.

If you have any questions, do not hesitate to contact me.