What is The Means Test? Chapter 7 Bankruptcy
The Means Test is used to see if you qualify for Chapter 7 Bankruptcy
The Means Test is intended to see if a person qualifies for Chapter 7 bankruptcy; it was designed to limit the use of Chapter 7 bankruptcy to those who cannot repay a significant portion of their debt obligations. The Means Test calculates your current monthly disposable income. If you do not pass the means test, you may not use Chapter 7 bankruptcy but may file a Chapter 13.
What if You Pass the Chapter 7 Means Test?
If you pass the Means Test it does not mean you have to file for Chapter 7 bankruptcy. Before you make a decision, it is best to talk to one of our affordable bankruptcy attorneys. Our bankruptcy attorneys may be able to offer valuable alternatives to filing bankruptcy which could save you money and grief.
What if You Do not Pass the Chapter 7 Means Test?
If you don't pass the Means Test, you will likely have to file for Chapter 13 bankruptcy. A Chapter 13 bankruptcy requires you to make monthly payments through a trustee over a 3 to 5 year period. The payments you make are monitored by the court.
Watch "Chapter 7 Bankruptcy Means Test Video" on YouTube
Watch the VideoClick the link above to watch the informative "Chapter 7 Bankruptcy Means Test Video" on YouTube. For a free bankruptcy consultation, fill out our contact form or call us today!
