Mississippi Consumer Help Blog
Most individuals will qualify to file for Chapter 7 regardless of the amount of debt. However, income must also be considered when filing for Chapter 7 bankruptcy. For example, if disposable income is sufficient to fund a Chapter 13 repayment plan — which is determined by your attorney completing what is called a “Means Test” which subtracts certain allowed expenses and monthly payments for certain debts from your gross income — you will not be allowed to use Chapter 7 bankruptcy but rather qualify for a Chapter 13 bankruptcy.
This is an area where it is important to consult with an experienced bankruptcy attorney. Your attorney will review your situation in depth through the “Means Test” process and advise you accordingly based upon the results.
So to sum it all up – an individual, a partnership, a corporation or other business entity may qualify to file for Chapter 7 so long as: