Filing for chapter 7 bankruptcy now includes a “means test,” to determine if applicants are actually eligible. It used to be easier to file chapter 7, but new laws have changed the rules. Chapter 7 was always meant for those people who could not afford a chapter 13 plan. It comes down to whether or not a debtor has the means to pay off what he owes through installments.
The means test compares an individual’s personal income to the average income, considering family size. Median incomes vary according to state – your Parker bankruptcy lawyer can advise you.
If your income is lower than the state’s average, you will be eligible for chapter 7. If it’s higher, your “disposable income” will then be determined. Again, your Parker bankruptcy lawyer will be on hand to help you calculate, and compare figures that you will have to present. Call Parker Lawyers and find out exactly where you stand: 303-841-9525.