Median Income for Filing Chapter 7 Bankruptcy

Your guide to income requirements and the means test in Nevada

Chapter 7 bankruptcy provides a fresh start for people in debt. Filing for Chapter 7 puts an end to creditor harassment, wage garnishment, and car repossession immediately, and you get a break from any foreclosure proceedings on your house. You see the benefits and feel the relief right away, and in about 3-6 months, you walk away with little to no debt at all.

Income requirements for Chapter 7 in Nevada

The only hurdle to getting started on your fresh start is passing the median income requirement. When you file for bankruptcy in Las Vegas — or anywhere else in the United States — your income has to fall below a certain amount, or median income, before you are eligible to file.

The median income for a single-family household in Nevada is $49,170 as of May 2018, and for larger families that number increases. These values change each year based on Census Bureau findings.

Size of family Income level
1 person $49,170
2-person family $62,204
3-person family $67,101
4-person family $77,397
More than four Add $8,400 for each additional family member

Your gross income for the last six months must fall below the median in order to qualify you for Chapter 7 bankruptcy. If you were earning more than the median income before recently losing your job, the average of your last six months of income may put you above the median. In that case, it may make sense to wait before filing for bankruptcy to make sure you meet the requirements. Call Christine understands that waiting may not be an option, however, and a skilled Las Vegas bankruptcy lawyer can help find a way to eliminate your debt more quickly.

Passing the Chapter 7 means test

Income levels above the median amounts may not disqualify you from Chapter 7. Instead, you will take the means test using form 122-A-2, which is a calculation of income minus expenses to determine if you have enough disposable income left over to pay off your debts. This is where an experienced Las Vegas bankruptcy lawyer can help.

Christine approaches bankruptcy by finding a way to help you eliminate your debts as quickly as possible. Chapter 7 bankruptcy is the best way to do that, and we can work with you to find ways to help you pass the means test by considering all expenses including court-ordered payments, taxes, secured debts, care for disabled loved ones, and more.

No cost to get started on your bankruptcy case in Las Vegas

It can be hard to find a way out from under massive debts when you are always looking at price tags. During this stressful time, our Las Vegas law firm wants to help you regain your footing and find financial freedom, beginning with an initial consultation with me. Call Christine at 702-213-8071 or contact us online to find a debt relief solution that works for you.