Chapter 7 income eligibility got slightly easier on April 1, 2025
If you are making less than the median income, you have income eligibility to file Chapter 7 bankruptcy. Those eligibility numbers adjusted up, April 1, 2025. For Virginia, eligibility is automatic for singles under $77,420, and a family of 4 under $145,585.
What if I’m over the median income? You can still pass the “means test.”
You can still be eligible for Chapter 7 if you are over the median income cutoff. But you have to pass the means test. The means test is a way of looking at your budget to see if you are legitimately broke.
Here are some main budget items that can help you if you are over the median.
- Child care
- Help for elderly family members
- Medical expenses, co-pays, prescriptions, dental work, etc.
- Big car payment
- Big mortgage payment
- Living in a high-rent county
If you earn more than the median income, you must carefully budget to show Chapter 7 income eligibility on the means test.
