How do I qualify for bankruptcy?

In order to qualify for a Chapter 7 bankruptcy, we first need to take a look at your income. What we do is we take an average of the last six months of your income and compare that to the median income for someone of your household size in your state. If you do qualify, if you're under the median income, you automatically qualify for a Chapter 7 bankruptcy. If you are over the median income, then we need to do an initial additional analysis called a means test, which is basically a long formula mathematical calculation that takes your income, subtracts allowable expenses, and then we determine whether or not you have any money left over at the end of the month, which is called disposable income. If that formula tells us that you have disposable income left over at the end of the month, then you'll be a candidate for a Chapter 13 bankruptcy, which is basically a reorganization, or a payment plan to your creditors.