Do I qualify for a Chapter 7 liquidation?
The Court has devised a complex analysis in order to determine your eligibility for a Chapter 7 liquidation; it is known as the means test. In general, if you earn less than the median income for your household you qualify. You may also qualify if you are above median income, if your income less your expenses (as limited by the means test) does not exceed $100 per month. Median income can be found on the United States Department of Justice Website. Even if you fail the Chapter 7 means test you may still qualify for a Chapter 7 liquidation. If your debts are primarily business related, you are exempt from the means test and may receive a Chapter 7 discharge despite having above median income or disposable income that exceeds $100 per month.