Do I qualify to file Chapter 7 bankruptcy?
Back in 2005, the bankruptcy code was amended with the addition of a means test to qualify to file Chapter 7 bankruptcy. Now there are limits for the amount a debtor can make and still qualifiy to file Chapter 7 bankruptcy. The means test requires the individual filing for bankruptcy to take his average income and compare it to the for their state. The debtor will get their average income for filing bankruptcy by taking the last six months of household income(if married spouses income must be included), starting with the month prior to the bankruptcy filing date and dividing it by six, then multiplying it by 12 to give the average annual income. Next the individual filing bankruptcy will compare it to the government’s
If the debtor makes under or close to the amount shown in the chart typically they will qualify to file bankruptcy under Chapter 7. There is more to the whole formula that includes the person filing bankruptcy must include their monthly household expenses and compare that to a one-month average income for the household. If the debtor has more than $170 in disposable income left over then they would be required to file Chapter 13 bankruptcy. Due to the complexity of filing Chapter 7 bankruptcy it is apparent that the average Joe should hire a bankruptcy attorney. A bankruptcy attorney will know how to time the bankruptcy and qualify the debtor who is borderline. Many times people filing for bankruptcy over look important items that are bankruptcy attorney would know about and they think are unimportant.
Getting answers to those tough bankruptcy questions needs to be thought of before you make a decision when it comes to your financial problems. Finding the answers to help you understand your situation more clearly can help you make an informed decision about filing bankruptcy. Take a minute to call or fill out the form to have a FREE NO OBLIGATION CONSULTATION with a bankruptcy attorney in your area.