A tool exists to determine eligibility for debt relief under Chapter 7 bankruptcy in the state. This resource helps individuals ascertain if their income exceeds established thresholds, potentially requiring them to consider alternative bankruptcy options such as Chapter 13. For example, an individual with income above the state median for their household size would use this resource to determine if deductions allowed under bankruptcy law would lower their income enough to qualify.
The availability of this tool is important as it provides a preliminary assessment of a filer’s options. This benefits both potential filers and legal professionals, streamlining the initial consultation process. Its development is rooted in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which introduced income limitations for Chapter 7 eligibility. Before this act, qualification was primarily based on a debtor’s ability to repay debts.
