This is a simple mathematical computation that will first look at your gross income in comparison to that of the median gross income of your state for an equal size household. Should your gross income be below the state’s level, you are instantly qualified for a Chapter 7 bankruptcy.
If you do not automatically qualify further testing maybe done by subtracting certain allowable reasonable and normal monthly expenses from your gross income. These expenses are generally in line with the IRS table for usual and normal monthly expenses. Once you subtract these expenses from your gross income you will have your net income.
If you still do not qualify for Chapter 7, you qualify for a Chapter 13.