What if our income is below the median income chart

I'm not sure what "chart" it is you are using as your source of legal information, but either it is inaccurate or you are misintepreting what it says. Being above median for your household size does not mean you have to file Chapter 7.   In fact, the opposite is usually, but not always, true. If you are above the median income, you then have to go through what is called the "means test" to determine if filing a Chapter 7 case would be considered a "presumption of abuse".   That presumption can be overcome depending on the specific facts of your case. This is an incredibly complicated analysis and not something any non-bankruptcy attorney can do competently (and there are even many bankruptcy attorneys who have trouble with it). To answer your specific question, if your income is below the median income, then you will most likely qualify for Chapter 7 UNLESS your actual current income/expense budget is showing a significant surplus.   For example, let's say you're married and your average household monthly income for the 6 calendar months prior to filing your bankruptcy case is $3,500.  Clearly this is below the median income in most (if not all) states.   But if you have very low monthly expenses, let's say $1,200 per month (I know it's unlikely, but this is just an example), then after taxes are deducted from your income, you may still be showing a surplus in your budget, which may be an obstacle to doing a Chapter 7 case. In short, you need to have a consultation with a qualified bankruptcy attorney in your area. Mark Markus has been practicing exclusively bankruptcy law in California since 1991.  He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization,  AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.