The Bankruptcy Means Test:
The bankruptcy means test determines who can file for debt forgiveness through Chapter 7 bankruptcy.
Before you can file for Chapter 7, you must first qualify. To qualify you must pass a “means test.” This test calculates you income, assets such as, real estate, vehicles, as well as, your household size, expenses, and debts. Depending on these figures and the federal guidelines it is determined if you qualify to file a chapter 7 bankruptcy. In a nutshell, the means test deducts specific monthly expenses from your monthly income to determine your disposable income. The higher your disposable income, the harder it is to file for chapter 7.
The Chapter 7 means test can be complicated, and even if your means test calculation doesn’t meet the special conditions to qualify you can still file for bankruptcy. If you have questions, whether bankruptcy is the right path for you and your family is to meet with attorney Carmelina Marin, a bankruptcy attorney.