The eligibility rules for bankruptcy are complicated.
For a Chapter 7 bankruptcy, you must pass a “means test.”
The means test considers your income, expenses, and family size.
If your income is below the median income for a household of your size in Missouri, you are eligible to file a Chapter 7. (“Median” basically means average.)
If your income is above the median income, the rules consider your allowable expenses. The court subtracts your allowable expenses from your income. If your income after expenses is too high, you are not eligible for a Chapter 7.
If a Chapter 7 is not an option, a Chapter 13 will help keep creditors at bay.
The easiest way to find out about your eligibility is to talk to a Missouri bankruptcy attorney.
You can schedule a free meeting with me, Justin Coke. At the end of the meeting, I will recommend your best course of action and explain the reasons for my recommendation.