The Means Test
What is it?
Qualifying for bankruptcy under
Chapter 7 of the Bankruptcy Code is done using the means test. The test was devised
to fight against inconsistent standards prevalent before 2005. The test
is administered in two parts. An Irvine bankruptcy lawyer from the law
office of Peter Rasla & Associates, P.L.C. can help you through a
means test and if you are not qualified for Chapter 7, he can inform you
of other possible options for you.
The first part of the means test determines if your average monthly income
for the prior six months is above, below or equal to the average family
income in your area. If it is below or equal to, you pass the means test
at this point and are qualified to file a petition under Chapter 7. The
test is accomplished through the completion of certain forms and documentation
of all sources of income. Some income is exempt. It is important to properly
document all income accurately on the forms as it can make the difference in
qualifying for bankruptcy or not.
Why You Need a Bankruptcy Attorney in Irvine
If your income is above the average in your area you would do the second
step. In this step, your income is compared with your allowed expenses.
If your allowed expenses are higher than your income you would qualify
for Chapter 7. If there is disposable income remaining that could pay
some portion of your debt, you may qualify for
If you are facing overwhelming debt and you have not been able to find
a way out, bankruptcy can be a legal option that allows you to make a
fresh financial start. Peter Rasla & Associates, P.L.C. has helped
many individuals and businesses begin anew when past bills become too
much of a burden. Their 15 years in practice gives them the understanding
and compassion that clients need in difficult financial times.
Contact the firm to review your options and for help completing the means test.