Three situations are responsible for 80% of all bankruptcy cases filed, and they are largely beyond your control. Un-reimbursed medical expenses are the leading cause of bankruptcy. Job loss is second, followed by divorce. Often, any one of these factors may lead to another. Job loss may cause divorce almost as easily as disability results in unemployment. The progression is similar to a game of rock-paper-scissors with tragic consequences.

A joint study conducted by two major credit card companies found that approximately 5% of all bankruptcy cases involved intentional credit card abuse. Small business owners who fail, victims of crimes, and single mothers account for the majority all remaining cases.

Spend a day in the gallery of a bankruptcy court, if you dare. You will understand why ordinary people must file again. You will also wonder why the 2005 Bankruptcy Code amendments, designed specifically to punish small debtors and make filing more difficult, left only corporate privileges in Chapter 11 untouched.

If you find yourself facing an insurmountable financial situation, you too would probably consider filing bankruptcy. It is not only pointless, but is indefensible to expect a $15 an hour employee to repay $500,000 in medical expenses while disabled. Without regular income, Chapter 13 is not available. Moreover, can this person qualify for Chapter 7?

Qualification to file Chapter 7 depends on several factors. If you received a Chapter 7 discharge in the last eight years, you cannot re-file. If you received a Chapter 13 discharge in the last 6 years and paid less than 70% of all unsecured debts, you cannot re-file. If you had a previous case dismissed with prejudice in the last 180 days, you cannot re-file. If you fail the means test, you cannot re-file.

The means test disqualifies all people from filing Chapter 7 if income exceeds the median income in their state residency over the last six months. A $15 an hour employee is an excessively high earner in a few states, if monthly expenses are low, and cannot file Chapter 7.

If you qualify, Chapter 7 stops the nonsense. It exempts disability income from forfeiture when discharging medical expenses. Child support payments are not dischargeable and remain payable. A disabled debtor must always pay child support, as a percentage, from all income received.

The means test is a fluid measurement. It changes each month in response to actual income and expenditures. You have the power within your grasp to make better choices. These choices determine if you can file Chapter 7 over the next six months. You should start now.