Qualifying for Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a debt liquidation tool that allows qualifying debtors to eliminate unsecured debt. Because it is such a powerful tool for debt-relief, the US changed the bankruptcy laws in an attempt to prevent people from taking advantage of Chapter 7 bankruptcy and to limit Chapter 7 bankruptcy to only those who are most in need of this type of debt relief.
Only people with incomes below the average incomes in their areas are eligible for Chapter 7 bankruptcy. The Arizona bankruptcy means test is the test used to determine your income for purposes of Chapter 7 eligibility. At the Law Offices of Farnsworth Mortensen, PLLC, we have a wealth of experience with this complicated test. Our lawyers can help you with the means test, to determine whether you are eligible for Chapter 7, and we will help you determine whether other bankruptcy options might be better for you.
More than 10,000 bankruptcies filed
Do You Qualify for Chapter 7 Bankruptcy in Arizona?
To pass the means test in Arizona, your median income has to be lower than the median income of Arizona residents with the same family size as you. To give you an idea what that looks like, the median incomes as of March 2011 are:
| One Person | Two People | Three People | Four People* |
| $42,603 | $55,404 | $59,659 | $67,113 |
*For every family member over four, add $7,500 to determine the median income.
If you know right away that you will not pass the means test, do not give up. Contact an experienced Arizona bankruptcy attorney. Even if the numbers don't match up, one of our lawyers can help you explore other options. There might still be a way to qualify you for Chapter 7 bankruptcy, Chapter 13 bankruptcy might be another choice, and there are other bankruptcy options that we can help you explore.
Contact a Tucson Bankruptcy Attorney ∙ Free Initial Consultations
Don't get too caught up in the details of bankruptcy. If you are facing serious debt problems and are considering bankruptcy, chances are you are dealing with a great deal of anxiety, as well. The best thing you can do right now is talk with an experienced bankruptcy lawyer and get straight answers to your financial questions. Our entire legal team shares our firm's commitment to our clients' needs. You can talk with one of our lawyers in a free, confidential setting, to get started on the road to financial freedom. Call 480-820-3600 in Phoenix, 520-298-3300 in Tucson, 888-634-0000 toll-free, or contact us online to schedule your free initial consultation with an attorney from our firm.
