http://www.lawguru.com/ is a Web site where you can post queries for attorneys to answer directly. For free. Yet, do not rely upon superficial online Q&As. Bankruptcy is fact-specific.

Now, I don't fancy myself a guru. But I'm still pretty good. I like to answer these reader questions, when the mood strikes.

A recent Lawguru post from a debtor we'll call, Xavier was: "If I make 92K a year and have approx. 50K in credit card debt, I short sold a house, had foreclose on another, can I file BK chapter 7?"

Unfortunately, this query is typical of some postings that are too broad in scope. Too many variables apply, which preclude a direct answer. I cannot answer Xavier's question: there are too many X's, man. But I'll address some of the relevant issues. The topic we've broached is the effect of income upon bankruptcy eligibility:

1) The first test for chapter 7 eligibility is a measurement of your average monthly gross income (be sure you understand what "gross" means as it applies to you). The applicable period for measuring your average gross monthly income is the six months prior to the month of your bankruptcy filing. We check if that average is below the gross median income in your state as it corresponds to your household size. Under the current figures for CA, Xavier's $92K is above the median income for households of 5 or fewer persons. The median income figures are updated periodically. This site has a median income test (but remember to use gross income and apply the relevant period in determining the average): http://bestcase.com/onlinetools/cmicalc.aspx?s=39537.

If your average gross monthly income is below the gross median in your state, then you are "presumptively" eligible to do a chapter 7. However, presumptive eligibility doesn't mean you're definitely eligible to do a chapter 7; many other factors are relevant to eligibility. For example, if your expenses are minimal and you have significant money left over at the end of the month, then you may need to do a chapter 13 bankruptcy (which consists of a payment plan). There are also limits on the number of times you can file for bankruptcy and other limitations apply to repeat filings. And mere eligibility for a particular bankruptcy chapter does not ensure success. Seek legal counsel.

If your gross income is above the median, then you must do the second test below.

2) The second test for chapter 7 eligibility is a determination of your "disposable income." The disposable income we refer to is in part an objective determination. This type of disposable income is what's left from your gross income after subtracting necessary deductions, secured debt payments, standard expense allowances and certain other expenses. If you have sufficient disposable income, then you need to do a chapter 13 bankruptcy (which consists of a payment plan), rather than a chapter 7 bankruptcy.

Your ability to protect your property from liquidation in chapter 7 is another important factor (among many) in deciding whether to do the chapter 7 (in the event that you are eligible).

Xavier would want to seek counsel in his area in order to determine if bankruptcy is a good idea.

While bankruptcy is a Federal provision, many factors are state-specific. Our office represents San Diego and Imperial Counties only and our discussions relate to bankruptcy under applicable California law.

Important disclaimer:

Unilateral written communications may be incomplete or misconstrued. This answer is not legal advice and it is based upon the limited and partial information provided in the question. This answer is general in nature. It is strictly opinion and legal opinions differ and some may be incorrect. This reply does not create legal representation and does not create an attorney-client relationship (or retainer). The information herein should not be relied upon in determining whether or not to take or refrain from any action. Only an attorney that agrees in writing to represent a person is capable of giving legal advice in response to a question. Such a hired or retained attorney is in a unique position wherein he or she can clarify the questions, determine and avoid conflicts of interest and gather all the information necessary to give an informed answer. A retained attorney is in a unique position to follow up on their legal advice and adapt/correct it as circumstances change or new information or knowledge comes to light. All individuals are urged to retain competent legal counsel before filing for bankruptcy. Errors in completing and filing a bankruptcy petition can have disastrous consequences.