If you are looking for debt relief under Chapter 7 bankruptcy, do not assume that you automatically qualify because you can’t pay your bills. Filing Chapter 7 bankruptcy can provide you relief if you’re burdened with overwhelming debt and harassed by creditors, but in order to qualify, you must first meet certain statutory requirements pertaining to your income and ability to repay your debts. Read more to find out if you qualify for Chapter 7 bankruptcy in Muskogee.
To Qualify For Chapter 7 Bankruptcy in Muskogee
All debtors, with the exception of disabled veterans, certain members of the armed forces and anyone who has primarily business debts, must qualify to file Chapter 7 bankruptcy by passing a court administered “means test” to insure that they do not have sufficient income to repay their debt.
In order to pass the means test, your disposable monthly income, which is your average monthly income for the 6 months preceding filing for bankruptcy minus certain allowable expense deductions, must be less than the median income for a household of comparable size in Oklahoma.
The median household incomes for bankruptcy in Oklahoma are currently:
$40,665 – single person household
$51,575 – two person household
$53,500 – three person household
$64,374 – four person household (with an additional $8100 for each individual in excess of four)
If your disposable monthly income is more than the median income for a household of comparable size in Oklahoma, you may still qualify if your projected disposable income over the next 5 years is less than $6000.
If your projected disposable income over the next five years is more than $6000 but less than $10,000, you will qualify only if it amounts to less than 25% of your total unsecured non-priority debt.
Although most debtors prefer Chapter 7 bankruptcy, because it grants them a complete discharge of all of their unsecured debt, if you do not qualify under any of the conditions above, you will only be able to file Chapter 13 bankruptcy, which will require you to repay a portion of your debt over a 3 – 5 year period.
To qualify for Chapter 7 bankruptcy in Muskogee, all debtors, with the exception of disabled veterans, certain members of the armed forces and anyone who has primarily business debt, must pass a means test to assess their statutory eligibility to receive a discharge under Chapter 7 bankruptcy.
To qualify for Chapter 7 bankruptcy, your disposable income must be:
1. Less than the median income of a household of comparable size in Oklahoma; or
2. Less than $6000; or
3. Less than 25% of your total unsecured, non-priority debt and less than $10,000.
For help in finding out if you for qualify for Chapter 7 bankruptcy in Muskogee, contact an experienced Muskogee bankruptcy attorney.
Free Consultation: Muskogee Chapter 7 Attorney
Don’t wait too long to learn about the options available to you. Get in touch right away with the Chapter 7 bankruptcy attorneys at The Wirth Law Office – Muskogee. For a no-cost, no-obligation consultation with a Muskogee Chapter 7 attorney, call (918) 913-0725 today, or call toll-free at 1-(888) 447-7262 (Wirth Law). You can also contact a Muskogee bankruptcy attorney using the box at the upper right-hand side of this page to send us a question or message.