Chapter 7 Bankruptcy?

Question

Hello guys. Unfortunately, due to a failed business, I have no choice but to file for bankruptcy. My question is...I heard in order to file for a Chapter 7 bankrutpcy, that you must pass a means test to see if you qualify. I heard that they look at the last 6 months of your income to see if you quality. My question is..."Is that 6 months of income from the time you file for BK or 6 months of income at the time that you do the "Meeting of the Creditors?" I don't obviously have income now because of the failed business but am looking for a job in order to live. Also, does the judge take into consideration that I am filing for BK due to a failed business and not because I bought all these luxury items? For anyone that has info on the new BK laws, I would greatly appreciate it. Thank you

Answer 1

The means test is based on 6 months prior to your filing date. Also, depending on what luxury items you bought, car, boat, house??? if you still owe money and want to keep them, you will have to continue to pay them off or surrender them and you wont have to pay for it. To file a Ch. 7, you have to make less than $39,000 with NO children, if you are married and have children then the income goes up.