Are You Eligible for Chapter 7 Bankruptcy?
The new bankruptcy laws passed in 2005 changed the eligibility requirements for Chapter 7 bankruptcy. Those wishing to file under Chapter 7 must now take a bankruptcy means test to determine if they are eligible.
To find out if you are eligible for Chapter 7 bankruptcy, or for more information about the bankruptcy means test, contact us. Wilson-Goodman & Fong, P.L.L.C., has offices in Gilbert and Queen Creek, Arizona. Call 480.503.9217 or 480.686.9400 to schedule a time to meet with a bankruptcy attorney.
What is a Bankruptcy Means Test?
The bankruptcy means test is a formula that considers an individual's financial position, and determines eligibility for Chapter 7 bankruptcy. Eligibility for Chapter 7 is based on income and expenses. If an individual's income is too high, he or she may still be eligible to file for Chapter 13 bankruptcy. Similarly, an individual with a solid income but high expenses may qualify.
The means test considers an individual's current monthly income against disposable income. If disposable income is too high, the debtor may not be able to file a Chapter 7 bankruptcy claim.
Why Was the Bankruptcy Means Test Developed?
The means test was developed to limit the number of people filing for Chapter 7 bankruptcy. Many people struggling with debt earn a solid income and may not have to have all of their debts liquidated through bankruptcy. While Chapter 7 totally eliminates debt, Chapter 13 reorganizes and eliminates a portion of debt.
Contact Us
To learn more about your bankruptcy options, contact a lawyer online to schedule a free initial consultation. We provide representation in bankruptcy court.
Wilson-Goodman & Fong, P.L.L.C. is a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.