Expert: Terry Leeders - 9/23/2008

Question
I live in Texas and have cancer and my bills have gotten out of hand!  I do make $80,000 a year and have 50k to 60k in debt.I also owe back taxes that I have been working with the irs to pay them back. Would I qualify for Chapter 7 to pay the 50k to 60k I owe in Medical bills,credit cards and 2 cars that got repoed?

Answer
Depending on your family size, you might be subject to the means test, an analysis of all income received in the 6 months leading up to your case.  If you are above the median income for your family size and area you live in, and your test shows positive income, then you would not qualify for chapter 7 absent any special circumstances.