Chapter 7 income eligibility got slightly easier April 1, 2025

If you are making less than the median income, you have income eligibility to file Chapter 7 bankruptcy. Those eligibility numbers adjusted up, April 1, 2025.  For Virginia, eligibility is automatic for singles under $77,420, family of 4 under $145,585.

What if I’m over the median income? You can still pass the “means test.”

You can still be eligible for Chapter 7 if you are over that median income cutoff.  But you have to pass means test.  The means test is a way of looking at your budget to see if you are legitimately broke.

For the means test, you need to budget carefully.

Here are some of the main budget items that can help you if you are over the median.

Child care

Help for elderly family members

Medical expenses, co-pays, prescriptions, dental work, etc.

Big car payment

Big mortgage payment

Living in a high rent county

If you are over the median income, really, really careful budgeting is required to show Chapter 7 income eligibility on the means test.

Northern Virginia bankruptcy lawyer Robert Weed. Knowledgeable and kind; friendly service with a smile.

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