Chapter 7 relief is not necessarily denied to a debtor just because their income is above the median income for their state. Such debtors may still qualify for Chapter 7 relief, but they will have to complete the seven page long form instead of completing the one page short form.
The long form contains a series of deductions that are based on national and local IRS standards as well as certain deductions that are specific to the debtor. The long form is used to determine a debtor’s net disposable income. This figure is calculated by subtracting permitted deductions from the debtor’s gross annual income. After completing this analysis, an above median income debtor may still qualify for Chapter 7.
To see the median income for your state click here:
