When the new bankruptcy laws were passed in 2005, a means test was introduced to help determine whether filing Chapter 7 or Chapter 13 bankruptcy is appropriate. In general, the means test measures income and expenses in comparison to the average household income in the state. If a debtor falls below the median income, he or she may qualify for Chapter 7 bankruptcy. If the a debtor is above the median income, Chapter 13 may be more appropriate.
The myth is that these bankruptcy rules made it more difficult to file under Chapter 7 and discharge debts. In reality, many people who would have qualified for Chapter 7 bankruptcy before the new laws still do qualify. Also, if a debtor's income is over the median, but he or she has a significant amount of debts and expenses, the debtor may still be able to file Chapter 7 bankruptcy.
The Law Offices of Michael S. Schwartz is an experienced bankruptcy law firm with extensive knowledge of the means test and how to file bankruptcy. We know the nuances of the law and work hard to apply the laws to your situation, putting you in the most favorable financial position possible.
We will explain the means test, how it works, and what role it plays in determining whether you should file Chapter 7 or Chapter 13 bankruptcy. As part of our representation, we will prepare the means test form for you to make sure the numbers are correct and it gives an accurate representation of your financial situation.
We understand that this is a new and stressful process for you. We do all we can to calm your fears and put you on the path toward financial freedom.
Do you have questions about the bankruptcy means test and whether you qualify for Chapter 7 bankruptcy? For a free consultation with the Law Offices of Michael S. Schwartz, call 215-396-7900 or send us an e-mail to speak with a lawyer.
We have offices in Southampton, Havertown and Perkasie to serve you.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.