Chapter 7 Bankruptcy

Although Chapter 7 bankruptcy is considered a “liquidation bankruptcy,” the vast majority of Chapter 7 bankruptcies allow you to keep your home, car and possessions, while eliminating most to all of your outstanding debts. This type of bankruptcy often applies to common debts such as credit cards, medical bills or personal loans.

To be eligible you must be able to pass the “means test,” which is a formula based upon your income and household size.   A simple phone call to our office can determine whether you pass the means test and whether you qualify for a Chapter 7 bankruptcy.  The means test is a formula that looks at an individual’s disposable income, relative to the median income for his or her area.

The Missouri Median income for an individual in 2017 is $44,286.  The medical income for a household of two is $54,697.  For a household of three the median income is $63.566.  With each additional household member the amount of allowed income increases.  Even if your income is higher than these amounts, you are not necessary disqualified from a St Louis MO Chapter 7 bankruptcy.  There are numerous deductions which can be utilized, including child support, paycheck deductions and secured debt payments.

Under Chapter 7 bankruptcy rules, you may be ineligible to file for Chapter 7 if one of the following applies:

  • You have filed for and received a discharge of debt within the past eight years under Chapter 7
  • You have had your debt discharged within the past four years under Chapter 13
  • You attempt to defraud creditors or the bankruptcy court


If you are considering filing for St Louis Chapter 7 bankruptcy, you need a knowledgeable St. Louis bankruptcy lawyer. We know that the unexpected happens and sometimes people need a clean slate to begin again. We can help you weigh your options and make the right decision.  Call today for a free consultation.