Leavengood, Dauval & Boyle, P.A. Articles Understanding The Means Test

Understanding The Means Test

By Leavengood, Dauval & Boyle, P.A.  May. 6, 2013 4:51p

Do you qualify for Chapter 7 debt liquidation?

If you and your family are suffering from crushing financial debt and you cannot see a way out, there is a way to end creditor harassment and earn a fresh start quickly and painlessly. Millions of Americans every year are choosing to file for Chapter 7 bankruptcy, waiving their debts through a quick process called debt liquidation. With the help of one of the experienced bankruptcy attorneys at Leavengood & Nash, PC, you too can save yourself and your loved ones from the pain and trauma brought on by bad financial luck.

In order to file for Chapter 7, you will first be required by federal law to undergo what is commonly referred to as the "Means Test." The purpose of this rule is to prevent debtors with enough income to pay off their debt through other means from abusing the system, while still allowing those with little economic prospects from pursuing a new beginning. To find out if you qualify for Chapter 7, please contact our firm as soon as possible.

The Means Test Overview

By choosing to seek a bankruptcy claim under Chapter 7, you have begun the first steps to free yourself of pesky creditors and winning a fresh start on life. You will first have to undergo a financial overview, submitting your records to the court for examination by a trustee. The court will first attempt to calculate your average annual income, which will then be compared to the median income level for a household of your size in Florida according to the US Census Bureau.

Should your annual income fall below the median, congratulations! You have passed the means test, and can begin the process of filing for Chapter 7. Should your annual income not meet this criterion, however, you may still be eligible. The court will then attempt to determine your income level compared to certain thresholds for standard of living, which may vary from location to location.

Once this second calculation has been completed, depending on your income and monthly expenses, you will either be allowed to file for Chapter 7, or you may have to attempt to file under Chapter 13 debt reorganization. Under the watchful eye of a trained bankruptcy specialist, you can be guided through this process easily and without stress.

A Bankruptcy Firm In Florida Is Here To Help

Do not allow your family to suffer needlessly under the weight of financial burdens! Contact Leavengood, Dauval & Boyle, P.A. right away to discuss your options and determine the best course of action. With the dedicated legal team at our Law Office on your side, you can beat your creditors and start your life anew. Visit our website today or call our firm via telephone for your free initial consultation.

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