Chapter 7 Means Test In Colorado
To determine if you are eligible to file Chapter 7 Bankruptcy in Colorado, a Colorado Bankruptcy Attorney can work with you to compare your income to the median income of other families in Colorado. If your current median income, which is the average monthly gross income earned for the six months prior to filing bankruptcy, is lower than other Colorado family’s income, you may be able to file Chapter 7 Bankruptcy. If you current monthly income is higher or equal to the Colorado state median income, your Colorado Bankruptcy Attorney can complete the means testing.
Means testing is done by analyzing your net monthly income. This amount is your current monthly income with deductions made for mortgage payments, car payments, taxes, child support and certain school expenses. If after these expenses are subtracted from your income you are still able to pay at least $6,000 or $100 per month toward unsecured debt for the next five years, you will probably have to file Chapter 13 Bankruptcy. This is just a general overview of means testing and a Colorado Bankruptcy Attorney should be contacted to review your specific financial situation.
State median data is provided by the United States Trustee Program. For the State of Colorado, after March 15, 2009, the median income for a single wage earner in the state of Colorado was $46,765 and for a family of two it was $65,668. For a family of three it was $70,838 and for a family of four it was $78,905.
Chapter 7 Bankruptcy is the quickest, simplest and most common method for discharging unsecured personal debt. In most situations it will take from four to six months to complete. Like all bankruptcy options, there are serious financial consequences and should not be done until a Colorado Bankruptcy Attorney is consulted.
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