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"Means Test"

Federal bankruptcy laws provide for a "means test" which will determine whether you are eligible to file of Chapter 7 Bankruptcy.

If your income is below the median income for families in Washington based on Census Bureau statistics, you are usually eligible. If you earn more than the median income for families in Washington based upon the average of your last 6 months of income, the amount of your mortgage, car payments, back taxes, child support due, daycare expenses and children's school expenses are considered to determine whether you qualify for Chapter 7 Bankruptcy.

You won't be eligible for a Chapter 7 Bankruptcy if, after deducting these amounts, and the living expenses provided in the Internal Revenue Service's national collection standards, you can still pay at least $6,000 ($100/month) to unsecured creditors over five years.

If you don't qualify for a Chapter 7 bankruptcy, your other option is to file a Chapter 13 Bankruptcy petition and pay back a portion of your unsecured debts over a period of 3-5 years. The U.S. Trustee Program applies the following median family income data to all cases filed on or after November 1, 2009. This median family income data will be adjusted again after the Census Bureau updates the data.

Median income in Washington State as of November 1, 2009:

	Single wage earner: $51,344
	Family of 2: $64,158
	Family of 3: $72,533
	Family of 4: $82,716
	*Add $6,900 for each individual in excess of 4.