You are deciding whether you are going to file for a Chapter 7 bankruptcy in Arizona. You realize that you have to pass the means test in order to qualify. Let’s go through the means test and what it looks like to pass. Passing the bankruptcy means test gives you a couple of ways to qualify.
- You can instantly be eligible by providing proof that your current earnings in your home are less than the Arizona average income for a household of your size.
- You can be eligible by engaging in the means test calculation to establish if you are in a position to honor part of your unsecured debts via Chapter 13 bankruptcy.
We will take some time to learn more about the first category, although the Arizona means test calculator goes through both alternatives for you.
Arizona Chapter 7 Income Limits
Below you will see the Arizona Chapter 7 income limits that are amended after every half a year, and they establish whether your family income is lower than the Arizona average income. This table is known as the Census Bureau Median Family Income By Family Size. The most current table, dated May 1, 2020, is shown below.
|# of People||Annual Income|
Take a look at your own family income calculation by considering the average of your household monthly earnings from the past six months. After you have the average monthly earnings figure, multiply it by 12 to annualize it. After that, compare the annualized monthly earnings with the Arizona average income shown below. If necessary, add $9,000 for every family member greater than 9.
Arizona Mean Test Calculator
There are some other factors to consider, including your marital status and if you have any other non-regular means of earning income that can be included in your average earnings. For example, we have a more accurate Chapter 7 Means Test calculator that considers such variables, plus it compares other alternatives including debt settlement and Chapter 13 to Chapter 7 by employing the Chapter 7 Statement of Your Current Monthly Income.
The calculator below does a rough estimation of whether you qualify for a Chapter 7:
Arizona Mean Test
Let’s assume that your earnings are higher than the Arizona Chapter maximum. What’s next? Well, keep in mind that that doesn’t mean that you miss the cut for Chapter 7 bankruptcy.
The other method of becoming eligible is taking the means test calculation to establish if you can pay some of your unsecured debt via a Chapter 13 bankruptcy. If you are in this position, you may consider speaking with a reputable attorney whether you may still be eligible for a Chapter 7 Bankruptcy.