Do I qualify for a Chapter 7 bankruptcy?
The Chapter 7 means test is a calculation applied to determine whether or not an individual qualifies to file for this type of bankruptcy. As a Chapter 7 allows for a complete discharge of qualifying debts, the means tests is intended to reserve this action for those who have no ability to pay their creditors. Those who do not qualify for a Chapter 7 may qualify for a Chapter 13, in which their creditors receive partial payment of the amounts owed. A Mesa bankruptcy lawyer can help you to apply the means test in order to determine your options when you are considering bankruptcy.
The means test can be quite involved but an overview of a simple case is outlined here. If your income is below the median income of families the same size of yours here in Arizona, you automatically qualify to file for Chapter 7. If this is not the case, you may still qualify but specific calculations must then be done to determine this. These deduct from your income your allowable expenses per IRS guidelines. The result is your disposable income and this if this figure is below or above a certain amount, you do or do not qualify. Certain other calculations may also apply here, and you should always get qualified legal help to assist you with the means test.
Mesa Bankruptcy Attorney
As the means test can involve further complications and exceptions, it is wise to consult with the attorneys at Dodge & Vega, PLC. Our firm grasp of the factors involved allow us to accurately assess your situation and help you to understand your options. Another possibility also exists which may allow you to file for a Chapter 7, which involves showing the Bankruptcy Court that special circumstances apply.