To qualify for Chapter 7 bankruptcy, your average gross income for the last six months must be below the state median income for your family size. (You can find the current Pennsylvania State Median Income figures here.) If your income is above the median, you must take a “means test” to determine if, after taking into account your allowable expenses, you qualify for Chapter 7.

The means test is not as ominous as it sounds, but it is complex and must be completed very carefully to avoid complications down the line. We can help you determine if you qualify for Chapter 7. (Often you can Avoid the Means Test altogether.) If you do not qualify for Chapter 7 after completing the means test, you may still be eligible for Chapter 13 bankruptcy. For more information on means testing, see our post on High-Income Chapter 7. >>More

Quick Note: Social Security benefits do not count towards the means test, although they do count as current income.

‍