What is the Chapter 7 means test?
Under Chapter 7 bankruptcy, most or all of an individual’s debts are fully dismissed without repayment, while important assets such as homes and cars are often preserved. Because of this desirable outcome, there are limitations on who may file for Chapter 7 bankruptcy protection. The means test, which compares the disposable income of individuals wishing to file for Chapter 7 to the state average of disposable income, determines whether an individual qualifies for Chapter 7 bankruptcy or not.
If you would like to learn more about the Chapter 7 means test, contact the Houston bankruptcy attorneys at the Russell Van Beustring P.C., today at 713-973-6650.