If you make more than the median income in North Carolina, the Means Test will examine your expenses, debt, and cost of living to determine if you can afford your current debts.

However, even if this assessment indicates that one’s earnings are not enough to pay their bills – no matter how much money they’re bringing home – as long as all other requirements for Chapter 7 bankruptcy eligibility have been satisfied then it is still possible to qualify.

A Chapter 7 is what people tend to think about when they hear the term “bankruptcy.” 

Cases are relatively short, and most people are able to keep their stuff, i.e., houses and cars.

There is an income limit that prevents higher income earners from qualifying to file a Chapter 7 that is called the “means test.” 

It is a test designed by Congress to try to weed out people who are able to afford to repay at least a portion of their unsecured debt.  For example, in North Carolina, for a household of 4, the means test limit for the household income is $90,039 per year. 

That means if a household of 4 has a yearly income of over that amount, they may not qualify for a Chapter 7. 

However, there are several factors that go into the means test, and sometimes people that make more than the means test amount are still able to qualify for a Chapter 7. 

We will determine that for you and analyze your options.

Being over the means test does not mean that you cannot file bankruptcy.  It may just limit the Chapter that you can file.