Not everyone qualifies for Chapter 7. The means test determines eligibility based on your income and expenses.
No hard limit. The means test threshold is the Minnesota median: $62,458 for 1 person. Below = automatic qualification. Above = full calculation with expense deductions.
The means test (11 U.S.C. section 707(b)) compares your income to the Minnesota median for your household size.
Below the median = automatic Chapter 7 qualification. Above the median = full means test calculation with expense deductions.
The means test uses your average income over the 6 full calendar months before filing. Included:
Not included: Social Security benefits and certain disability payments.
Minnesota has its own exemption system - one of the more debtor-friendly in the country.
If you have significant non-exempt property, Chapter 13 lets you keep everything while repaying creditors through a plan.
No hard limit. The means test threshold is the Minnesota median: $62,458 for 1 person. Below = automatic qualification. Above = full calculation with expense deductions.
You can file Chapter 13 (no income limit). Many above-median filers still pass after deducting allowable expenses.
6 full calendar months before filing. If income recently dropped, waiting to file can lower the calculation.
Yes, if equity does not exceed Minnesota's $450,000 homestead exemption. If it does, the trustee could sell the home.
Yes. Credit counseling before filing and debtor education after filing are both required.
Use our free screener to check if prior filings affect your eligibility for a new bankruptcy discharge.
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