What is the Bankruptcy Means Test?
There is a lot to know when it comes to filing bankruptcy. For example, there are different types of bankruptcy for which you can file, not to mention the Bankruptcy Means Test that you can take.
Essentially, the Bankruptcy Means Test is meant to determine who is eligible for filing for Chapter 7 bankruptcy. This test will factor in expenses, family size, and income in order to figure out whether you are able to repay your debts with the disposable income that you have. Most people who take this test actually end up passing quite easily, although the test was designed to minimize the number of people who are actually eligible for Chapter 7 bankruptcy. Additionally, if you are not eligible for Chapter 7 bankruptcy, it is still possible that you will be able to file for Chapter 13 bankruptcy.
The test comes in two parts that are both designed to test for how much disposable income you have. The first part of the test will check whether your household income is above or below the median income of people in your state. In order to prepare for this, you will need to gather all the documentation you can about your income that you have learned in the past 6 months. If you are below the median value, you can file for Chapter 7 bankruptcy. If not, you can take the second step of this test, which involves getting together any documentation that you have about your expenses in the past 6 months. This can also be used to determine your disposable income and thus your eligibility for chapter 7 bankruptcy.
If you are considering filing for bankruptcy and want to know more about the Bankruptcy Means Test, it would be a smart idea to consult with a Brighton Beach bankruptcy lawyer. Ursulova Law can provide you with the best bankruptcy lawyer Brighton Beach has to offer.