How do I determine if I am eligible to file for Chapter 7 bankruptcy in California based on the means test?

To determine if you are eligible for Chapter 7 bankruptcy, you must pass the "means test," which compares your household income to the California median income. If your income is below the median, you likely qualify; if it's above, a more detailed calculation is required. Here's how to determine your eligibility: Step 1: Calculate Your Average Monthly Income Gather your income records from all sources for the last six full calendar months before you plan to file. This includes pay stubs, business income records, and statements for unemployment, social security, or other benefits. Calculate your average gross monthly income by adding up all income from this period and dividing by six. Step 2: Determine Your Household Size Count every person in your household for whom you provide financial support. This typically includes you, your spouse (if filing jointly), and any dependents living with you. Step 3: Find the California Median Income Data Go to the U.S. Trustee Program website (search for "means testing information"). Find the table for "Median Family Income Based on State/Territory and Family Size." Locate the current income figures for California that correspond to your household size. These figures are updated periodically. Step 4: Compare Your Income to the Median Compare your average monthly income (from Step 1) multiplied by 12 to the annual median income for your household size (from Step 3). If your annual income is less than or equal to the median, you pass the first part of the means test and are likely eligible for Chapter 7. If your income is higher, you must complete the second, more complex part of the test, which calculates your disposable income after allowed expenses. Important Details and Nuances: The means test is based on federal bankruptcy law, not the California Code of Civil Procedure sections you listed. Those laws (e.g., CCP 703.140, 704.730) govern which assets you can protect after you file, known as exemptions, not your eligibility to file in the first place. If your income is above the median, the second part of the test allows you to subtract standardized national and local living expenses from your income. If your remaining disposable income is below a certain threshold, you may still qualify. Warnings and Limitations: The means test calculation, especially the second part involving disposable income, is complex. An error on the official forms (Form 122A-1 and 122A-2) can lead to the dismissal of your case. Certain debts, like business debts, may exempt you from the means test entirely. This is general information and does not constitute legal advice. For complex situations or to ensure your calculations are accurate, you should consult with a qualified California bankruptcy attorney.