What is the debt to income ratio guidelines for filing a Chapter 7 bankruptcy in California?

In order to file Chapter 7 bankruptcy, you must prove your need by passing the means test.  A major part of the Chapter 7 means test involves comparing a person’s income to the median income in their state.  If your median income is less than your state’s median income level, then you probably qualify to file Chapter 7 bankruptcy.  If your income is above this level, then you need to examine Chapter 13 bankruptcy.

Filing a Chapter 7 bankruptcy puts an automatic stay into effect.  This immediately stops your creditors from trying to collect.  As a result, creditors cannot garnish your wages, empty your bank account, or go after your car, your house, and your personal belongings.  A Chapter 7 bankruptcy will usually take approximately four to six months to complete from the date of filing of the bankruptcy petition.  Chapter 7 is designed for debtors in financial difficulty who do not have the ability to pay their existing debts.  Under Chapter 7, you may claim certain property exempt under applicable law.