It can be hard to decide whether Chapter 7 bankruptcy is right for you.
Below is the Chapter 7 Means Test Calculator that determines whether you qualify for a Chapter 7 bankruptcy using the US Bankruptcy Form (B 122A-1). Also included is analysis about other potential debt relief options.
Do you qualify for Chapter 7 bankruptcy? Check using the Chapter 7 Calculator.
The Chapter 7 Means Test Calculator below highlights whether you appear to qualify for a Chapter 7 bankruptcy in your state. Because the calculator is an estimate, your actual results may vary (to have a more precise estimate, use our calculator here). The precise means test estimate uses the US bankruptcy form, "Chapter 7 Statement of Your Current Monthly Income".
A Chapter 7 bankruptcy provides liquidation. In other words, this means that the sale of nonexempt property and the distribution of the funds to the creditors owed is guaranteed. To qualify for a Chapter 7, you must meet the income and household number guidelines per your own state’s guidelines via the means testing. Of course, there are certain exemptions where you may still qualify for a Chapter 7 even though your income is above the median. However, these are on a case by case basis.
The means test calculator above uses the most recent Census Bureau Median Family Income as of May 1, 2019 provided by the United States Department of Justice.
While a Chapter 7 is one of the more severe bankruptcies, there are many pros to consider when deciding whether this debt relief solution is best for you. Here are the pros:
As with any debt relief option, Chapter 7 is accompanied with cons to filing and going through with this debt relief options.
There are a few main alternatives to Chapter 7 Bankruptcy. Each debt relief alternative has its own set of pros and cons. Here are the main alternatives to Chapter 7 bankruptcy.
As with every debt relief action, there is a severity associated with that action. Below is our estimate of how Chapter 7 compares to other debt consolidation and debt relief options.
Not necessarily. For example, you could qualify for a Chapter 7 bankruptcy, but only have $100 in total debt. Meaning that such a drastic solution would be too much for such a low debt amount.
On the other hand, let’s say you have $300,000 in unsecured debt and recently lost your job, so you have no income. A Chapter 7 bankruptcy in this situation may make more sense, but it always depends on each situation and each individual.
We like to understand your goals for debt relief and your full financial picture before recommending to speak with a bankruptcy attorney. To help you, please provide a few pieces of information and we will reach out to you.