New Arizona Means Test Numbers – Do You Still Qualify for Chapter 7 Bankruptcy?


Arizona Bankruptcy lawyerStarting on November 15, 2013 there will be updated means test numbers here in Arizona for chapter 7 bankruptcy filers.  What does this mean?  Let me back up and start with what the “means test” is.

Back in 2005 Congress, in its infinite wisdom, decided that they wanted more people to file chapter 13 bankruptcy rather than chapter 7 bankruptcy.  The way they hoped to accomplish this was limiting chapter 7 bankruptcy to those at or below a certain income level.  Household size is also taken into account when determining if you qualify for chapter 7 bankruptcy.

Periodically these numbers are updated and that will happen here in Arizona on November 15, 2013.  As this may impact the ability of some families to file a chapter 7 I wanted to share these new numbers with you.  Here are the updated income limits and household size for people living in the State of Arizona:

Household Size Annual Income Monthly Income
1 Person $41,993 $3,499
2 People $55,022 $4,585
3 People $56,503 $4,709
4 People $64,604 $5,384
5 People $72,704 $6,059
6 People $80,804 $6,734
7 People $88,904 $7,409
8 People $97,004 $8,084

For each household member after eight (8) you add an additional $8,100 per year or $675 per month.

So based upon this charge in order for my family – there are eight of us – my annual income must be $97,004 per year or less or $8,084 per month or less in order to be able to qualify for a chapter 7 bankruptcy filing.

What If I Make Too Much for a Chapter 7 Bankruptcy?

If you make more than the allowed amount under the means test you still may be able to file a chapter 7 bankruptcy.  There are dozens of deductions we can make to bring your income down below the median income for a family of your size.  For instance, we can deduct the taxes you pay, your medical expenses, car payments, house payments, health insurance premiums, term life insurance premiums, child support, child care expenses, court ordered payments, education expenses for a physically or mentally challenged child, disability insurance premiums, charitable contributions (including tithing), and many more.

My point – even if you make more than the allowed amount, there is a good chance you may still qualify for a chapter 7 bankruptcy.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© John Skiba, Arizona Consumer Law Group, PLC | Attorney Advertising

Written by:


Arizona Consumer Law Group, PLC on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.