If you are considering filing for Chapter 7 or Chapter 13 bankruptcy in Michigan, one of the first steps of the process is to determine your eligibility to file. The means test and your disposable monthly income determine a person's eligibility to file for Chapter 7 bankruptcy relief.
The Means Test looks at annual household income for the past six months. If that amount is below the median income for a household of your size, then you qualify to file for Chapter 7. If that amount is over the median income, you may still qualify for Chapter 7, but you must complete the means test.
You must also have just enough income in order to pay your reasonable regular monthly expenses, which in Michigan is less than $100 per month left over. If you have more than $100 per month left over, Chapter 13 bankruptcy is still a good option for you.
At the Michigan law firm of Marrs & Terry, PLLC, our goal is to help our clients understand bankruptcy qualifiers and to help individuals determine if they qualify for Chapter 7 or Chapter 13 bankruptcy.
Michigan Bankruptcy Qualifiers
The means test is based strictly on a person's last six months of income and does not include any Social Security Disability payments. Whether you were working the entire time, or you were on vacation for the last six months and had no income, that is the amount that will be used for the means test.
Given that the median income is frequently changing in Michigan and that much of the qualification process is based upon circumstances, it is important that you do not try to determine your eligibility or to take the means test on your own. An experienced lawyer can help you complete this process correctly and assist you with a Chapter 7 or Chapter 13 bankruptcy when it is appropriate.
If you have been told that you do not qualify for Chapter 7 or Chapter 13, you should still speak with one of our experienced attorneys for a second opinion. Discuss your case with our Ann Arbor bankruptcy attorneys by calling 866-665-8095 or by e-mailing us online.
