The Chapter 7 Bankruptcy Means Test
When a person’s debt obligations become unmanageable, there are a few options available to them. One of the most desirable, for many debtors, is financial assistance offered through Chapter 7 bankruptcy. Under this form of bankruptcy, an individual will have some of their assets liquidated in order to help discharge their debts, although important assets such as houses and vehicles can often be exempted. However, in order to qualify for this form of bankruptcy, the debtor must pass the Chapter 7 means test.
If you or someone you know is considering pursuing bankruptcy as a means for managing your finances, we can help you understand your full range of options and the best possible course of action. Contact a Houston bankruptcy lawyer at the Russell Van Beustring P.C., today at 713-973-6650 to speak with a qualified member of our legal team about the details of your situation.
How the Means Test Works
The Chapter 7 means test can be understood fairly easily. The following are the basic components which an individual must pass in order to qualify for this form of bankruptcy:
- If the individual’s monthly income is below the median income in the state for a similarly sized household, they pass the test.
- If the individual’s monthly income is above the state median, their disposable income, or the money they have left over each month after paying necessary expenses, will be examined. If the disposable income is below a certain amount, the debtor will pass the test.
Getting financial support through bankruptcy can be a very valuable asset to you and your family when you are experiencing financial difficulty. Thus, knowing whether you qualify for Chapter 7 bankruptcy is essential to continuing with this course of action.
If you are considering filing for bankruptcy protections, an experienced attorney can significantly improve your likelihood of receiving the best possible outcome. Contact the Houston bankruptcy attorneys at the Russell Van Beustring P.C., at 713-973-6650 today to discuss your situation with a knowledgeable member of our legal team and learn more about your rights and options under the law.