Chapter 7 bankruptcy is a good option for consumers who simply have too much debt and can not keep up with payments. They may have lost their job or come across unexpected expenses, such as medical bills or car repairs. If you take the means test and your income is below the median, t...
Chapter 7 Means Test: Median Income Test If your gross income is less than the median income for a family of your size, you may be eligible for Chapter 7 bankruptcy. On the other end of the spectrum, if your income is significantly over the median income for a family of your size, yo...
The means test. The first step is to determine if you are eligible to file a Chapter 7 bankruptcy petition by taking a “means test.” Your income must be lower than the median income in your state. If your income is too high, you may not be eligible to file for bankruptcy under Cha...
Those filing for Chapter 7 bankruptcy will be required to prove, under something termed the means test, that their income qualifies them for this relief. Furthermore, those who qualify will be required to produce significant financial information including schedules of assets and liabilities, schedules...
In a chapter 7 case, the bankruptcy trustee gathers and sells the debtor’s nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor’s property may be subject to liens and ...
so long as the debtor meets all other eligibility requirements. The Chapter 7 “means test” allows debtors to determine whether their income is low enough to qualify for Chapter 7 bankruptcy. The formula is meant to prevent debtors with higher incomes from obtaining Chapter 7 bankruptcy relief....
Chapter 7 Bankruptcy Qualifications There are a few different qualifications that a person must meet in order to file for chapter 7 bankruptcy. The debtor must pass a means test that looks at their income and expenses. The debtor must also show that they have tried to repay their debts but ...
For Filing Chapter 7 and Chapter 7 Bankruptcy Information Including Unsecured Debt, Secured Debt, Exemptions and More Chapter 7 offers a truly fresh start for those who qualify. See our page on the Mean’s Test to find out more. Upon receiving your discharge order from the court, you are ...
Some people with high incomes and large mortgage payments are permitted to file under Chapter 7. The bankruptcy attorneys at The Law Offices of Thomas W. Lynch, P.C. will help you work through the federal “means test” to determine whether or not you qualify for a Chapter 7 bankruptcy. ...
Businesses can also file for Chapter 7 bankruptcy, but they are not subject to the means test. For a business, Chapter 7 involves liquidating assets to pay creditors and then closing down operations. This is often the best option for businesses with insurmountable debt and no viable path to p...