Chapter 7 income eligibility gets slightly easier

Chapter 7 income eligibility got slightly easier April 1, 2025
People making less than the median income have income eligibility to file Chapter 7 bankruptcy. Those 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.
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.
 
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