Can anyone file Chapter 7?
The 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) made filing for Chapter 7 more difficult. Congress created the “means test,” a formula aimed at calculating disposable income. If your income is above the median family income in Alabama, you may have to file a Chapter 13 case. In determining whether you qualify under the means test to file for Chapter 7 protection, BAPCPA takes into account all the income earned by your household (your husband or wife’s income will be counted). However, the analysis only looks back six months. Your means test figures will be based only on your household income over the last six months. If you earn more than the median family income in Alabama, you must fill out “means test” forms requiring detailed information about your income and expenses. If the forms show, based on standards in the law, that you have a certain amount left over that could be paid to unsecured creditors, the bankruptcy court may decide that you cannot file a C
