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.
The means test calculations are based upon IRS and US Census data concerning the median income of your household size in the county which you reside. However, even if your gross income exceeds the median income, you may qualify for chapter 7 if certain allowed deductions and expenses bring you below the means test threshold. Allowed deductions and expenses include: payroll deductions (i.e., taxes, insurance, mandatory retirement contributions, union and uniform dues), mortgage payments, car payments, childcare, medical expenses, health and disability insurance, life insurance, child support, alimony, and charitable giving (i.e., tithes and offerings).
Contact our experienced attorneys today to help determine qualifications.
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 Gillespie & Murphy, P.A., 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.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.