How do I still not qualify when all together we bring in $3122 a month for 5 people?

The income level which is measured to determine if you're eligible for chapter 7 isn't current income, it's the household income for the past six months. So, if you worked during those six months, your household income isn't $3,122 per month - it's $3,122 plus your monthly income. Your household unarguably consists of you, your fiance and the 3 children who live there full time. So your household size is, at minimum, 5. Based on the current (effective 11/1/14) Census data the Chapter 7 household income limit for a 5 people differs by state ranging from a low of $5,521 in Arkansas to a high of $9,622 in Connecticut. How joint custody children are handled also differs by state - in some states, you can count a child if that child has a bed in your house that is used regularly - regardless of whether it's one night a week or six nights a week - The "Heads on Beds" states would count your household size as 8 - resulting in an income limit of $7,546 to $11,647. The most common method always you to count the joint custody children based on the amount of time they spend in your household - since these children spend 1/2 their time at your house - each would count as 1/2 person. The three are 1.5 children which is rounded up to 2 children. Under this rule your household size is 7 with income limits that range from $6,871 to $10,972. Your lawyer sounds like someone who files the occasionally bankruptcy and isn't familiar with the rules. In your position, I would demand the refund of my $500 and find a lawyer that is a expert in bankruptcy rather than someone who dabbles. You certainly shouldn't have had to pay anything until the lawyer could tell you whether you qualify for a Chapter 7 or a Chapter 13. That's like a car dealer demanding a payment before you had a test drive or picked out whether you want a $12,000 Chevy Spark or the $60,000 Corvette.

There is the issue of the Means Test and the issue of your budget. You can fail the Means Test but if you have nothing in your budget after just paying necessary living expenses, you can qualify to file Chapter 7. Many Chapter 7 attorneys don't want to take the risk of having a fight on their hand over this issue (because fights with the US Trustee can be very time consuming and expensive) so they incorrectly believe that filing is impossible. I would suggest looking for an attorney who has a successful strategy for dealing with this issue.

You qualify automatically with that income. Seems your lawyer is either unethical or incompetent.

Sir something did occur. The means test was calculated and that is not a simple task and in fact is one of the more complicated and valuable tasks. You may need a second opinion because the means test is complicated but the fee you paid is fair.