One of the most common bankruptcy misconceptions is:

“I make too much money to file Chapter 7.”

That conclusion may be wrong.

Chapter 7 eligibility is more complicated than comparing your salary to a single income number.

What Does “Above Median” Mean?

The Chapter 7 means test uses applicable median-income figures as part of its analysis.

Household size and other factors matter.

But being above the applicable median does not automatically end the analysis.

Can I Still Qualify Above Median Income?

Potentially.

The means test contains additional calculations involving allowable expenses and other statutory deductions.

The result depends on your actual circumstances and the bankruptcy rules applicable when your case is filed.

Don’t Rely on Old Income Limits

Median-income and means-test figures change.

A blog post containing a specific income threshold can therefore become outdated.

For current eligibility, use current figures and an individualized calculation.

What If I Really Don’t Qualify for Chapter 7?

Chapter 13 may still provide significant relief.

Chapter 13 can:

• Stop many collection actions
• Stop many garnishments
• Address mortgage arrears
• Address certain secured debts
• Provide structured treatment of debts
• Discharge qualifying obligations upon successful completion

Not qualifying for Chapter 7 does not mean bankruptcy cannot help.

Is Chapter 13 Always Worse Than Chapter 7?

No.

Chapter 13 sometimes provides tools that Chapter 7 does not.

For someone trying to save a house, address certain secured debts or protect assets, Chapter 13 may actually accomplish more.

Frequently Asked Questions

Is there a maximum salary for filing Chapter 7?

There is not one permanent salary ceiling applicable to every Oklahoma debtor.

Can high-income earners file bankruptcy?

Yes. The appropriate chapter and outcome depend on the debtor’s complete financial circumstances.

Does household size matter?

Yes. Household circumstances can affect applicable means-test figures.

Should I calculate the means test myself?

You can find general information online, but filing decisions should not be based solely on a simplified calculator.

Find Out Before Assuming You Don’t Qualify

Don’t spend years struggling with debt because you assume your salary makes bankruptcy unavailable.

Contact Brown Law Firm for a free bankruptcy consultation. We can perform an individualized analysis and explain whether Chapter 7, Chapter 13 or another strategy makes the most sense.