After running up a lot of credit card debt, Mort wants to make a "fresh start" by obtaining a Chapter 7 liquidation bankruptcy. Mort discovered that his family's income is below that of the median family income for a family the size of Mort's family in his state. As such, Mort qualifies to obtain a discharge of debts under Chapter 7 because ________.

Question

Quizplus · Accepted Answer

Mort qualifies for a Chapter 7 discharge because his family's income is below the median family income for a family of his size in his state, which means he passed the median income test. This test is used to determine eligibility for Chapter 7 bankruptcy by comparing the debtor's income to the median income for a similarly sized family in the same geographic area.

After Running Up a Lot of Credit Card Debt, Mort