In Arizona, the median income for one earner is $42,107. A single individual must make less than this in order to qualify for Chapter 7 bankruptcy.
Arizona Median Incomes
Arizona median income amounts updated as of May 2013.
To determine the median income for a family with more than 8 people, add $8,100 for every additional person.
In Arizona, your qualifying income will be determined by the 6 months immediately prior to your bankruptcy filing. If your income has fluctuated in that time, you may need to wait one or more months in order to have your 6-month income lowered.
If You Make Less Than The Median Income
If you determine that your income from the previous 6 months is less than the state’s median income for your family size, then you can proceed with a Chapter 7 bankruptcy.
There may be other factors you’ll need to consider so it’s recommended you contact a bankruptcy attorney to discuss your available options.
If You Make More Than The Median Income
If your income is higher than the state’s median income, you may still be eligible to file for Chapter 7 bankruptcy. Some individuals are exempt from the means test altogether, including:
- Disabled veterans who were on active duty or performed homeland defense activities
- National Guard and reservists who were called to active duty or performed homeland defense activities (though only for time of duty and 540 days afterward)
- Consumers whose debts are not primarily consumer-based
For those who don’t fall into these categories, it’s still possible to file for Chapter 7 bankruptcy based on expense deductions offered by your county.
Determining Expense Allowances
For those who make more than Arizona’s median income, you can qualify for Chapter 7 eligibility by deducting various living expenses from your monthly income. This offers a more accurate view of your finances and can prove that bankruptcy is a viable option.
Living expenses that can be deducted for the Arizona means test may include:
- Housing expenses: rent, utilities and other house costs
- Health expenses: various out-of-pocket healthcare costs
- Basic living expenses: clothing, food, various personal supplies
- Transportation expenses: gas, repairs, other vehicle operation costs
Depending on your county, there may be other expenses you can deduct in order to meet the requirements of the means test. At Skinner Law Group, we can help you qualify for Chapter 7, if possible. Call us today at (480) 422-3440 to schedule your free bankruptcy consultation.