Determining whether you qualify for Chapter 7 bankruptcy depends largely on your income. You might be asking: What are the Chapter 7 income limits in Michigan?
The income limits for Chapter 7 bankruptcy in Michigan are based on the state’s median income. As of the most recent figures, the income limits are:
- $53,815 for a one-person household
- $67,015 for a two-person household
- $80,465 for a three-person household
If your income is below these thresholds, you may qualify for Chapter 7. If your income exceeds these limits, you may still be eligible by passing the Means Test, which accounts for necessary expenses.
With decades of experience helping Michigan residents through bankruptcy, I’ve guided countless individuals in determining eligibility and securing financial relief. Let’s take a deeper look at the Chapter 7 income requirements and how they may apply to your situation.
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FAQs About Chapter 7 Income Limits in Michigan
What happens if my income exceeds the Chapter 7 income limits?
If your income exceeds the limits, you must pass the means test to qualify. Alternatively, you may consider filing for Chapter 13 bankruptcy.
How often are the Chapter 7 income limits updated?
Chapter 7 income limits are updated annually by the U.S. Trustee Program to reflect changes in median income levels.
Is all income included in the Chapter 7 means test?
Most income is included, but Social Security benefits and certain other types of income may be excluded.
Can I qualify for Chapter 7 with high medical expenses?
Yes. High medical expenses or other special circumstances can be factored into the means test to help you qualify.
Does Michigan use federal or state income limits for Chapter 7 bankruptcy?
Michigan uses federal income limits based on the state’s median income levels to determine Chapter 7 eligibility.
Can I still file for bankruptcy if I fail the means test?
Yes. If you fail the means test, you may qualify for Chapter 13 bankruptcy, which offers a structured repayment plan.
How can an attorney help me pass the means test?
An attorney can help by identifying allowable deductions, organizing your financial records, and advocating for exceptions, increasing your chances of qualifying for Chapter 7 bankruptcy.
