How Can You Qualify for Chapter 7 Bankruptcy?
Interviewer: It seems that it was easier to file a ‘7, but have the courts made it harder to file a ‘7 with a means test? How much harder is it to file a ‘7 and what do you have to do and what are some of the specifics to qualify?
Adam: To give an example, they look at the generic income of a family of four in say, Ohio and it varies by state. If their income were below $44,000 for a family of four, they would qualify for a Chapter 7. Even when they do a Chapter 7, say they just went out and bought a new car and they want to keep the new car. The family can still save some of their assets through the Chapter 7.
Interviewer: One of the basic tests for where you practice in Eastern Ohio a family of four can’t earn more than $44,000 a year in order to qualify, right?
Adam: The amount might have been recently raised because there is always a cost of living or inflation adjustment, but the figure I quoted of $44,000 is certainly close.
By Adam Hunt