MEANS TEST UPDATED BY UNITED STATES TRUSTEE – SEE IF YOU QUALIFY FOR CHAPTER 7

One of the main elements used to determine if you qualify for chapter 7 or 13 is household income. Depending on household size, the means test permits debtor(s) to earn up to a certain amount in income, which is based on the last 6 months of earnings. The income thresholds that are used to qualify one for a chapter 7 bankruptcy have been adjusted to reflect the increase in cost-of-living.

Effective May 15, 2022

Household of 1: $65,895.00
Household of 2: $87,355.00
Household of 3: $97,092.00
Household of 4: $111,535.00

There are other elements that must be considered before deciding which bankruptcy chapter to
file, such as whether or not one owns any property as well as examining the type of debt owed to see which chapter is appropriate. Additionally, the term “household size” may differ from how you may prepare your taxes, so it is important to discuss your living situation with an attorney before filing a bankruptcy case in order to ensure that you are using the correct threshold to determine if you qualify for chapter 7.

To find out what type of bankruptcy may be right for you, please feel free to reach out to your
Yuba City bankruptcy attorney at (530) 797-4402 to discuss how bankruptcy can help you today.