Who Doesn’t Qualify for Chapter 7 Bankruptcy?

Not everyone qualifies for Chapter 7 bankruptcy. If your income is above the median for your state or if you have disposable income after living expenses, you may fail the means test. This test is a mathematical formula used to determine whether you have the ability to repay your debts. If you are deemed capable of repayment, Chapter 7 is not an option, and Chapter 13, a repayment plan, may be the alternative.