Do I Qualify For Bankruptcy?

Given the different types of bankruptcy options, most people in North Carolina will qualify for bankruptcy. However, there are certain factors to keep in mind.

Income Thresholds For North Carolina: The Means Test

For those wishing to file for Chapter 7, or "straight" bankruptcy, you must pass what is referred to as the means test — a test that calculates your "disposable income" (monthly income minus monthly expenses).

In order to pass the means test and qualify for a Chapter 7 filing, your disposable income must be at or below a stipulated amount set forth by law in the county you live.

For instance, a resident of Wilmington, North Carolina, will qualify for Chapter 7 bankruptcy if he or she has an annual income of $55,722 or less with a two-person household size. Alternately, those in Greenville with a four-person household size will qualify if their annual income is at or below $72,830. For those living in Jacksonville or New Bern, North Carolina, single households will qualify if their annual disposable income is $42,946 or less. The median income is based on your household size, the county in which you live, and your qualified deductions.

Even if you make over the median income in your county, don't give up. You may still qualify for Chapter 7 with allowable deductions. Let us help you find out. For those whose income exceeds the income levels set for in the Chapter 7 means test, there are alternative options available — such as Chapter 13 bankruptcy.

Previous Bankruptcy Filings

If you have filed for bankruptcy in the past, qualifying again will depend on various factors such as whether the previous bankruptcy was discharged or dismissed and the type filed.

Visit our page on Can I File Bankruptcy More Than Once? for more information. Contact our attorneys at 252-558-1374 to schedule a consult.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.