Are There Disqualifications Other Than The Means Test?
There are qualifications to file for chapter 7 other than the Means Test. Someone who had more than $100 in disposable income might be expected to use that money to pay back some of their creditors through a chapter 13 bankruptcy, which would make it another reason why someone might be disqualified from filing for chapter 7, and this would be the case even if the person had $100 more of monthly disposable income.
Do They Look At the Income and Do A Budget as Part of the Means Test?
Basically, they would take a look at what expenses were reasonable and necessary for the household for a given month, and they would compare that with the person’s income during that same period. If there was $100 or more left over, then there would be an expectation that the debtor or the person who was contemplating the bankruptcy could do a chapter 13 instead.
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