What is the Income Limit for Chapter 7 Bankruptcy in Michigan?

The income limit for Chapter 7 bankruptcy in Michigan is based on the state’s median income, which varies depending on your household size. If your household income is below the median income for your household size, you automatically qualify for Chapter 7.

If your income exceeds the median, you may still qualify by passing the “means test.” This test calculates your disposable income to determine if you have enough to repay a portion of your debts through a Chapter 13 plan.