Business Debt Qualifies for Chapter 7 Bankruptcy Regardless of Income

I just filed a Chapter 7 bankruptcy for a client who has close a restaurant. There is a means test to qualify for Chapter 7 bankruptcy. That means that if you make more than average income, you may not qualify for Chapter 7, and may have to file a Chapter 13 bankruptcy in which you make payments over time. However if the majority of the debt that you incurred before filing bankruptcy is business related debt, you do not have to pass the means test and you can file a Chapter 7 bankruptcy regardless of your income.

If you have questions about bankruptcy call Evan Livingstone at (707) 526-4600 English or (707) 206-6570 Spanish for a free consultation.

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