Law Offices of David Freydin Articles Understanding The Means Test

Understanding The Means Test

By Glanzer & Associates, P.C.  Jun. 13, 2011 4:24p


Filing for Chapter 7 bankruptcy has several advantages for the client seeking to end their debt. It is a relatively quick process that avoids years-long repayment plans in favor of quick, decisive legal action to pay off debt and return to normalcy. This is in contrast to the other primary option for individuals, Chapter 13, which usually takes 3-5 years of monthly payments to pursue to completion.

Since 2005, however, Chicago has implemented a method to prevent abuse of this process by debtors who could pay off their debt through other means. This method is intended to allow clients who have few other financial options to pursue Chapter 7 bankruptcy, while ending potential exploitation of the system. This method is called the ‘means test’.

Income Determination

Clients wishing to pursue Chapter 7 must undergo the means test, which is essentially an evaluation of the person’s income and available financial resources. The specifics of the process may vary from situation to situation and courtroom to courtroom, but in general, the process of completing the means test usually follows a similar pattern.

The first and most important determination that must be made is whether the client’s average income is above the median average for a similarly sized household in the United States. If it is below the median, the client usually qualifies for Chapter 7. If not, a more in depth examination must be made. The client generally has several more options available, specific to his or her financial situation, which might allow qualification. This is when obtaining the service of a skilled and knowledgeable Chicago bankruptcy attorney can help make the difference.

Seek A Bankruptcy Attorney To Tip The Scales

If you are in need of financial assistance in ending your debt, the team at Glanzer & Associates, P.C. can help you! Whether you need a one-time consultation or wish to pursue a more lasting relationship, our firm is dedicated to helping you defeat your debt and move on with your life.

Please, contact a Chicago means test attorney before it is too late.

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