Bankruptcy lawyers in Sacramento California are most commonly asked how an individual can qualify for Chapter 7 bankruptcy and what qualifications or standards need to be met in order to file. Determining who can file for bankruptcy can be complicated and so seeking out a Sacramento bankruptcy attorney can ensure that this step in the bankruptcy process goes well and that the correct type of bankruptcy is chosen.

Chapter 7 Bankruptcy Means Test

When filing for Bankruptcy in California, the means test is a calculator that determines when a debtor's income is low enough to file for Chapter 7 bankruptcy and was established to prevent high earners from filing this type of bankruptcy. What many individuals don't realize is that one can earn a significant monthly income and still qualified for Chapter 7 bankruptcy, especially if you have a large number of expenses.

California Chapter 7 Income Limits

A debtor must enter income and expense information onto the proper bankruptcy form when filing and this is used to determine if you qualify for Chapter 7 bankruptcy. If current monthly income is less than the set income limits, also called median income, for your household size in California, then you pass the means test and can file for Chapter 7 bankruptcy. Median family income by family size is constantly changing. As of 2016, the median income for 1 earner in California was $50,519. With a family size of 2 people, the amount increases to $66,458, 3 people: $70,732, and 4 people $81,740. Additional states for median family income can be found here.

If there is a doubt what should be included as income or who can be counted as a member of your household a Sacramento bankruptcy attorney can explain how the trustees and judges in your jurisdiction view members of households. For assistance in filing for Chapter 7 bankruptcy, contact a local Sacramento bankruptcy attorney to ensure a discharge of debt under the US Bankruptcy Code.