The Means Test

By Bronson Law Offices  Apr. 25, 2011 2:40p

Determining Qualification For Chapter 7 Bankruptcy

If you are seeking to file for bankruptcy in the state of New York, it is of utmost importance that you speak with a qualified legal professional to help guide you through the process. When debtors seek to file for bankruptcy unaided by a Queens bankruptcy attorney, they often make mistakes that could easily have been corrected with the help of a knowledgeable and trained lawyer.

It is important to understand a few basic facts about filing in the state of New York. IF you are attempting to file for Chapter 7 bankruptcy, for instance, you will need to pass what is referred to as a ‘means test’, to determine if you are eligible to pay your debt off through a Chapter 13 filing. This test may sound daunting, but with a bankruptcy attorney by your side, you can move through it with ease.

The Means Test Summarized

The means test is essentially a way of determining the assets, or ‘means’ of the claimant attempting to file for Chapter 7. By looking at your income and other financial assets, the court will decide whether you qualify or not.

The test comes in two stages. The first test is a simple determination of your median income. The court will determine the average amount of income you received over the past 6 months, and compare it to the median level of income for an individual or family in New York, depending on your status when filing. If you make less than the median, you automatically pass the test and may file for Chapter 7.

If not, you will pass on to the second stage, which involves a more detailed look at your possessions, income, and expenses, in order to determine your approximate disposable income. Depending on the results of this examination, you may or may not pass the test.

Seek A Bankruptcy Lawyer In Queens

Whether you pass the means test or not, it is always a good idea to get help from a trained legal professional. The team at Bronson Law Offices has worked for 15 years to help clients resolve their debt woes. Allow us to help you as soon as possible!

Contact a Queens bankruptcy attorney today to discuss your options.

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