Chapter 7 income eligibility gets slightly easier

Chapter 7 income eligibility got slightly easier April 1, 2025

If you are making less than the median income, you have income eligibility to file Chapter 7 bankruptcy. Those eligibility numbers adjusted up, April 1, 2025. For Virginia, eligibility is automatic for singles under $77,420, family of 4 under $145,585.

What if I’m over the median income? You can still pass the “means test.”

You can still be eligible for Chapter 7 if you are over that median income cutoff. But you have to pass means test. The means test is a way of looking at your budget to see if you are legitimately broke.

Consumer calculating expenses of means test

For the means test, you need to budget carefully.

Here are some of the main budget items that can help you if you are over the median.

Child care

Help for elderly family members

Medical expenses, co-pays, prescriptions, dental work, etc.

Big car payment

Big mortgage payment

Living in a high rent county

If you are over the median income, really, really careful budgeting is required to show Chapter 7 income eligibility on the means test.

Northern Virginia bankruptcy lawyer Robert Weed. Knowledgeable and kind; friendly service with a smile.

Meet Vanessa, Lexria & Jubilee Key

Meet Vanessa, my Paralegal

Vanessa Hill, bankruptcy paralegal, has worked for me for twenty years. She will get your credit report (when you give us permission) and she will set up our next meeting.

Meet Lexria, My Virtual File Clerk

Lexria, is my virtual file clerk. She can’t answer legal questions, but she is really good at getting the necessary information and bankruptcy required documents.

Meet Jubilee Key, my document manager

Jubilee Key is my document manager. She will send you our final papers for approval after we go over them, and then send them to the court. But her first job is to get your permission, so Vanessa can get your credit report. So look for an email from Jubilee.