The Nebraska Income Test and Chapter 7 Bankruptcy
The income test determines if your average monthly gross income is below the average monthly gross income for other Nebraska families of similar size. If you income is less then other Nebraska residents, you most likely will be able to file Chapter 7 Bankruptcy. If you income is above the average monthly gross income compared to other Nebraska residents, you will have to complete additional means testing.
Additional means testing will review your income minus pre-determined expenses such as your house payment, your car payment, child support payments, taxes owed, and school tuition (up to $1650). If you have a disposable income which will allow you to pay $6,000 or 100 per month toward your debt over the next sixty months, you may have to file Chapter 13 Bankruptcy. If you can not pay that much, but you could pay up to 25% of your disposable income toward your unsecured debt over the next sixty months, you may have to file Chapter 13 Bankruptcy.
State median data is provided by the United States Trustee Program. For the State of Nebraska, after March 15, 2009, the median income for a single wage earner in the state of Nebraska was $37,803 and for a family of two it was $53,453. For a family of three it was $62,814 and for a family of four it was $72,179.
The information provided above is very general and should not be considered legal advice. Means testing can be very complicated. It is important to contact a Nebraska Bankruptcy Attorney to determine if you can qualify to file Chapter 7 Bankruptcy. Our Nebraska lawyers are courteous and understanding of your situation and are eager to get you back on the right path towards financial freedom.