DAY 8 — Do I Qualify for Chapter 7 Bankruptcy in Maryland?
Week: Week 2: Decision — Choosing Your Path
Intent: High-Intent | Chapter 7 Eligibility
Not everyone qualifies for Chapter 7 bankruptcy. Learn the income test, means test, and Maryland-specific requirements to see if you're eligible.
You likely qualify for Chapter 7 if your income is below Maryland's median income for your household size, or if you pass the means test showing you don't have enough disposable income to repay your debts. Most people who need Chapter 7 qualify for it.
The Two-Step Qualification Test
Step 1: Income Comparison
Compare your average monthly income over the last 6 months to Maryland's median income for your household size. If you're at or below the median, you automatically qualify for Chapter 7. No further analysis needed.
Step 2: The Means Test
If your income exceeds the median, you're not automatically disqualified — you take the means test. This calculates your disposable income after allowable expenses. If your disposable income is low enough, you still qualify.
Maryland Median Income Benchmarks (approximate, verify current figures)
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Single filer: approximately $70,000–$75,000/year
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Household of 2: approximately $90,000–$95,000/year
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Household of 3: approximately $105,000–$115,000/year
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Household of 4: approximately $120,000–$130,000/year
These figures update periodically. An attorney will use current Census Bureau figures for your specific situation.
Other Eligibility Requirements
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You haven't filed Chapter 7 in the past 8 years
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You haven't filed Chapter 13 in the past 6 years (with exceptions)
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You haven't had a bankruptcy dismissed for abuse in the past 180 days
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You complete required credit counseling before filing
What If I'm Above the Median?
You may still qualify through the full means test. Allowable deductions — housing, transportation, medical expenses, childcare, certain secured debt payments — can bring your disposable income below the threshold. Many above-median filers still qualify.
Maryland-Specific Insight
Maryland has a higher median income than most states, which actually works in your favor. If you live in Baltimore, the DC suburbs, or other high-cost areas, the means test gives credit for higher living costs, making it easier to qualify even with a moderate income.
Reality Check
The means test sounds complicated, but the vast majority of people who need Chapter 7 pass it. An attorney can run your numbers in minutes. Don't assume you don't qualify before getting a professional assessment.
Related Questions
→ What Income Disqualifies You from Chapter 7?
→ Is Chapter 13 Better Than Chapter 7 for My Situation?
→ What Debts Are Eliminated in Chapter 7?
→ How Long Does Chapter 7 Take from Start to Discharge?
