The Means Test in Chapter 7 Bankrutpcy
A San Jose Bankruptcy Attorney on the Means Test for Filing Bankruptcy...
San Jose consumers, San Jose Bankruptcy Attorneys want to know: do you have the means?
There are two basic income tests that determine a debtor’s eligibility for Chapter 7 bankruptcy:
1. The “means test,” which compares a debtor’s average monthly income for the six months before filing bankruptcy to the median income in a debtor’s state.
2. The “abuse under all circumstances” test, which looks at a debtor’s current income and expenses and determines whether a debtor has enough disposable income to repay some of their debts.
So how does this affect you, San Jose? Well, if you fail the means test, you a presumption of abuse arises and a debtor must file Chapter 13 bankruptcy not Chapter 7. If you fail the “abuse under all circumstances” test, the Office of the U.S. Trustee must prove your ineligibility for Chapter 7.
The means test is a perfect example of why debtors in San Jose may want to seek out legal counsel. I highly recommend any high income debtor facing bankruptcy to seek the help of an experienced bankruptcy attorney who can more fully explain the means test and its implications. Gain knowledge, San Jose!
If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
