THE MEANS TEST FOR CHAPTER 7

The Means Test Requirement for Chapter 7 Bankruptcy

This  Chapter 7 Bankruptcy page sheds light on the intricacies of bankruptcy laws and proceedings, specifically focusing on the parameters of Chapter 7. Central to understanding this kind of bankruptcy is discussing the ‘means test,’ which is a determining factor for qualifying for Chapter 7. This test scrutinizes the applicant’s financial situation, examining the individual’s income and expenses over the past six months to assess one’s financial situation accurately.

The means test calculation provides an unbiased measure of the debtor’s disposable income, based on nationally and regionally set standards. If the debtor’s income results in minimal or no disposable income, they are typically eligible for Chapter 7 bankruptcy. However, if the debtor has a higher disposable income, it suggests they have the potential to repay a portion of the debts, leading to the ineligibility of filing under Chapter 7.

In scenarios where individuals do not satisfy the means test criteria for Chapter 7, they might still have the option to proceed under Chapter 13 bankruptcy. Rather than liquidating non-exempt assets, which is the fundamental tenet of Chapter 7, Chapter 13 facilitates the creation of a repayment plan to systematically clear debts over 3-5 years whilst allowing the debtor to keep their property.

Navigating the winds of bankruptcy can be challenging. With the right legal guidance, debtors can understand the nuances of Chapter 7 and Chapter 13, helping them to make a well-informed decision that caters to their unique financial circumstances.

Helping You Regain Financial Health

Deciding to file for bankruptcy can feel like a daunting and disheartening choice, but the team at Long & Long will work tirelessly to help you navigate the complexities of Chapter 7 Bankruptcy procedure. Our knowledgeable attorneys are well-versed in examining the detailed financial records required by the ‘means test,’ and can help you understand what the results indicate for your unique financial situation. We aim to empower you to make the most informed decision about your financial future, whether that’s proceeding with Chapter 7 bankruptcy, considering alternative options like Chapter 13, or debunking common bankruptcy misconceptions. We believe that everyone deserves a second chance, which is why providing thorough insights into these important financial matters is our top priority. To help initiate an open discussion about your financial situation, we offer a Free Consultation. Remember, wearing the difficulties of debt is not inevitable. Reach out to us and take your first step toward regaining your financial health.

Facing the possibility of bankruptcy can be overwhelming and stressful. However, you don’t have to navigate this complex process alone. At Long & Long, our dedicated team of legal professionals provides comprehensive support and guidance for Chapter 7 Bankruptcy cases. We possess in-depth knowledge and proficiency in bankruptcy laws that can protect you and lay the groundwork for a brighter financial future. By choosing our firm, you’ll receive personalized attention and advice designed to yield the most favorable outcome. We firmly believe in making legal support accessible, which is why we offer a Free Consultation to help you kick-start the bankruptcy process. Don’t let worries about debt consume your life. Make the first step towards financial relief by contacting Long & Long at (303) 832-2655 or through our website. Experience the unique blend of compassion, commitment, and high-caliber legal services that our clients have come to trust.