- If you want to qualify instantly, you have to show that the Colorado median income for your household size is higher than the current earnings of your household.
- The means test calculator can also be used to make you eligible by determining if you can settle a part of your unsecured debts through Chapter 13 bankruptcy.
Although we will focus mostly on the first option, the Colorado means test calculator explores both alternatives.
Colorado Chapter 7 Income Limits
Colorado Chapter 7 earning limits will help you determine if the income of your household is lower than the Colorado median income. These limits are reset every six months. This table is referred to as Census Bureau Median Family Income By Family Size. The most recent table, on or after November 1st, 2020 can be found below. To start, look at your average household income by considering your monthly household earnings for the past six calendar months. After you have the average monthly income figure, annualize it by multiplying it by 12. Then compare the Colorado median income shown here with the annualized monthly earnings. Keep in mind that for any member in the household above nine, you will add $9,000.
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Colorado Mean Test Calculator
There are some additional considerations, such as whether you have non-standard sources of income that can be considered in your average earnings, as well as whether you are married.
We have a very accurate Colorado Chapter 7 calculator that factors in such variables. We also compare a Chapter 7 bankruptcy using Chapter 7 Statement of Your Current Monthly Income to other alternatives such as debt settlement and Chapter 13.
The calculator below provides a rough version of whether you qualify for a Chapter 7:
Colorado Mean Test
What if the Colorado Chapter 7 income limit is lower than your income? There is another way you can be eligible for Chapter 7 bankruptcy.
Taking the means test calculation will establish whether you have the financial power to pay part of your unsecured debts via Chapter 13 bankruptcy Colorado. If you can’t make the payments, it is still possible to qualify for Chapter 7 bankruptcy. To determine eligibility, take a look at the expenditure information which is based on national and state averages: Census Bureau and IRS data. Subtract your Colorado expenses from your income, and ultimately you’ll get the amount that you can pay your unsecured debts under Colorado bankruptcy regulations.