Yes, you can make too much money to qualify for Chapter 7 bankruptcy. Chapter 7 bankruptcy is designed for individuals who do not have the means to repay their debts. To determine eligibility, the bankruptcy court uses a “means test,” which evaluates your income and expenses.
If your income exceeds the median income for your state, you may be required to go through the means test. This test compares your average monthly income over the six months prior to filing with the median income in your state for a household of your size. If your income is above the median, you may not qualify for Chapter 7 and could be directed to file for Chapter 13 bankruptcy instead, which involves a repayment plan for your debts.
It’s important to consult with a bankruptcy attorney to understand your options and ensure that you are following the correct legal procedures based on your financial situation.
