What time period is considered for whether or not I qualify for Chapter 7?
If a debtor is filing for chapter 7 bankruptcy relief, and the debt is primarily personal debt, than the debtor may have to consider passing the "mean's test." What is the lookback period for determining whether or not a debtor will qualify for a chapter 7?
The Trustee will lookback to the income from the past six months from the date of filing in determining eligibility.
The entire household income will be considered. Therefore, if a debtor who is contemplating bankruptcy makes too much money but knows the income will reduce soon, then he or she should hold off for a few months until the six month average falls below the state median income for that household.
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