by Mark E. Godbey, Lawyer Referral Service Panelist
Yes. If your income is above the median income for a family the size of your household in your state, you may have to file a Chapter 13 (“debt adjustment”) case. The median income figures are state specific and change at least once a year; an experienced bankruptcy attorney will be able to review these figures with you to determine whether or not your income is above the median income line. If your income is above-median, then you must fill out “means test” forms requiring detailed information about income and expenses. If, under standards in the law, the consumer is found to have a certain amount left over that could be paid to unsecured creditors, the bankruptcy court may decide that the consumer cannot file a Chapter 7 (“straight” bankruptcy) case, unless there are special extenuating circumstances.