Are there any exceptions if your above median income?

[Frodo]

Is the rule concrete that if your above the median income, you are not eligible for a chapter 7? I am wondering if there are any other factors considered other than just income level? Thanks...

[bige1030]

No. Your eligibility for Chapter 7, if your income is above the median for your state, depends on your disposable income (income minus allowable expenses). What you need to do is to take your monthly disposable income and multiply it by 60. If that number is...

...less than $6000 - you qualify for Chapter 7 (i.e. the presumption of abuse does not arise).
...at least $6000 but less than $10,000 - if that number is also less than 25% of your nonpriority unsecured claims (e.g. credit cards, not child support), you qualify for Chapter 7 (i.e. the presumption of abuse does not arise). Otherwise, the presumption of abuse arises in Chapter 7.
...$10,000 or more - the presumption of abuse arises in Chapter 7.

It's hard to rebut the presumption of abuse - you need a serious medical condition or a call to active duty that requires justifiable extra spending in order to do that. Thus, most people for whom the presumption of abuse arises could have their Chapter 7 cases dismissed.

[Jeepy89]

We were above the median income and filed Chapter 7 -and was discharged. So it can be done