Chapter 7 bankruptcy (aka straight bankruptcy) is typically the best option for consumers with little or no income and assets, or whose income will not cover their necessary living expenses or their debt.
In order to determine whether you can file for chapter 7 bankruptcy you must first undergo a bankruptcy means test. This test will begin by determining your median income compared to the median income for a similarly-sized family in your state. Your regular income, disposable income and unsecured debt are all taken into consideration when determining whether or not you pass the means test. If your income falls below the median in your state, you may be allowed to file for chapter 7 bankruptcy.
Deciding which bankruptcy chapter is right for you is not an easy decision to make. You should contact an experienced bankruptcy lawyer to discuss all of your options before making any life-altering decisions.