|Law Offices of Robert G. McCoy and Associates,
Serving Riverside and San Bernardino Counties
WHAT DOES IT TAKE TO QUALIFY FOR BANKRUPTCY IN CALIFORNIA?
HOW TO QUALIFY FOR CHAPTER 7
HOW TO QUALIFY FOR CHAPTER 13
|FAMILY SIZE:||One Person||Two Persons||Three Persons||Four Persons||Five Persons||Six Persons||Seven Persons||Eight Persons||Nine Persons|
*(As of January 1, 2009, according to the U.S. Department of Justice)
MEANS TEST B:
Even if the debtor does not meet the requirements of "Means Test A" (because his or her income is too high), he or she may still be able to qualify for a Chapter 7 Bankruptcy under what is commonly referred to as "Means Test B." Under this test, the costs of the debtor's food, clothing, health care, housing, utilities and transportation are considered. If after taking into consideration all these costs, it is determined the debtor will not have enough income to make monthly payments into a Chapter 13 Plan, then the debtor will qualify for a Chapter 7 Bankruptcy.
TOTALITY OF THE CIRCUMSTANCES TEST:
This test is just like it sounds. The court may consider the totality of a debtor's financial situation to determine if a debtor qualifies for a Chapter 7 Bankruptcy. For example, even though a debtor has had income below the median for the last 6 months, if he just got a job paying him three times what he made before, the court may find that the debtor can afford to pay at least a portion of his debts and therefore should not qualify for a Chapter 7 Bankruptcy.
Special rules apply if you filed for a bankruptcy in the last 180 days and the case was dismissed; you may or may not qualify.
You must take a credit counseling course (available on the internet and takes about 1.5 hours to complete).
WHAT DOES IT TAKE TO QUALIFY FOR A CHAPTER 13 BANKRUPTCY IN CALIFORNIA?
Back to top
BACK TO HOME PAGE