The Means Test: Qualifying For Chapter 7 Bankruptcy
By Price Law Group
Dec. 16, 2012 9:20a
Are you eligible to file for Chapter 7 debt relief?
If you, like many Americans, are struggling financially in these difficult times, there is hope on the horizon. In the current troubled economic climate, millions of people every year are choosing to declare bankruptcy and put an end to their monetary woes. With the help of a qualified bankruptcy attorney in your corner, you can fight back against your creditors and ensure your future will be secure.
By filing for Chapter 7 bankruptcy, you immediately receive a court mandated stay preventing your creditors from harassing you or contacting you regarding your outstanding debt. This relief lasts for the entire process, which usually takes no more than several months. By ending the stress of creditor harassment, you have already begun the process of rebuilding your life for the better!
Once the filing procedure begins, your trustee will start to review your finances and assets in order to determine what property is considered exempt from liquidation. After this is completed, your non-exempt assets are seized by the court and sold in order to pay off your creditors. Despite common misconceptions to the contrary, many of your belongings can be exempt from liquidation, including your home, car, tools you require for your job, furniture, clothing, and other household items. Afterwards, any remaining debt is wiped away and you are free from your remaining financial obligations.
Determining Your Chapter 7 Qualifications
If this all sounds too good to be true, however, know that the process comes with one important caveat. Before you can file for Chapter 7 and get a fresh start on your life, you must first prove your eligibility under the Means Test.
The first and easiest step in completing the Means Test is to compare your average yearly income to the median income of a household of your size in your area. Should your annual earnings fall in the lower half of the sample, you automatically qualify!
The second step, should your income stand at or above the median, requires a more complex calculation to determine your disposable income. With the aid of a bankruptcy lawyer to guide you through this process, however, you will not find it too difficult to complete. After finishing this step, you will either be allowed to file for Chapter 7, or be required to file under Chapter 13 debt consolidation.
A Trained Financial Expert Is Here To Help
If you have been suffering under the burden of your debt, do not wait any longer! Filing for Chapter 7 debt relief can be the best decision you may ever make. At Price Law Group, our legal team has been helping clients start a new lease on life for decades. With more than twenty years of experience under our belts, we have the skill and know-how to help you today. We urge you to visit our website right away to learn more about your options.