Jan. 25, 2021
Your Guide to the Bankruptcy Means Test
You’ll have to meet certain requirements if you intend to file bankruptcy. One of those requirements is the means test. A bankruptcy attorney Greensboro NC office can perform the calculations to determine if you qualify. Here’s some information about the test:
What Is the Means Test?
The means test is a calculation that a bankruptcy attorney in Greensboro NC can calculate to see if you meet the financial requirements to file for bankruptcy. Ultimate, you’re telling the courts that you cannot afford to pay your creditors when you file for bankruptcy. Therefore, you’ll need to have an attorney prove that your situation is true. The means test does that.
How Is the Means Test Calculated?
Bankruptcy lawyers in Greensboro NC will review your income and expenses. The first thing they’ll look at is your income to determine if it’s lower than the state’s median. They will then use a complex calculation to determine your disposable income. That will let the attorney know if you can indeed afford to pay your debt. Having too high of a disposable income figure can complicate your bankruptcy case, unfortunately.
What if You Don’t Pass the Means Test?
Failing the means test means that you will be unable to file for Chapter 7 bankruptcy. However, you still might be eligible to file Chapter 13. Chapter 13 is a different type of bankruptcy that involves creating a repayment schedule and paying back some of your debts to the creditors. You won’t be able to avoid paying some of your debts. The good news is that your bankruptcy attorney may be able to work some of your fees into the repayment schedule. That option is often unavailable in a Chapter 7 bankruptcy situation.
Contact an Attorney for Assistance
It’s advisable to employ the services of a reputable bankruptcy attorney Greensboro provider, such as the Law Office of Mercedes O. Chut, if you’re thinking about filing for bankruptcy. An attorney can help you through every part of the process and ensure that your paperwork is correct and complete. Bankruptcy is not something you should try to do alone. Contact an attorney for a consultation to discuss the services you can receive.