You can earn significant monthly income and still qualify for Chapter 7 bankruptcy if you have many expenses, such as a high mortgage and car loan payments (although they must be reasonable), taxes, and other expenses. Read on to determine if you can pass the means test and file for Chapter 7 bankruptcy.

Can you file Chapter 7 if you make a lot of money?

Even if you make too much money to automatically pass the Chapter 7 means test, you may still be able to qualify for Chapter 7 bankruptcy. If you’re a low-income filer, you’ll likely qualify for Chapter 7 bankruptcy based on your gross income alone.

How much income can you have to file Chapter 7 bankruptcy?

For our present purposes, what counts is that after applying those rules, if the amount left over—the “monthly disposable income”—is no more than $117, then you can still file Chapter 7. • If your “monthly disposable income” after deducting expenses is between $117 and $195, then the following formula is applied.

Can you file bankruptcy if you make more than the median income?

Under the Bankruptcy Code, anyone who makes more than the median income in their state must take the means test to determine if they qualify for Chapter 7 bankruptcy. Those whose means test results prove that they don’t have any discretionary income after all of their bills are paid can file Chapter 7…

How long does it take to file Chapter 7 bankruptcy?

Your employment income will play a role in determining whether you can file Chapter 7 bankruptcy and wipe out qualifying debt in four to six months, or whether you’ll make monthly payments to your creditors for three to five years through a Chapter 13 repayment plan.

What happens if you have too much money to file bankruptcy?

Those whose means test results prove that they don’t have any discretionary income after all of their bills are paid can file Chapter 7 bankruptcy. However, debtors whose means test results show that they have some money left after their bills are paid will be required to file Chapter 13 bankruptcy.