By Jeff Field | Published November 28, 2023 | Posted in Chapter 7 | Tagged Tags: disposable income, means test, median income | Leave a comment
7 Common Pitfalls in Meeting the Chapter 7 Means Test
When individuals struggling with overwhelming debt decide to file for Chapter 7 bankruptcy, they must usually pass the means test. This is the government’s method of determining whether the debtor actually has sufficient income to repay creditors, at least partially. The means test can be a formidable hurdle to establishing eligibility for bankruptcy relief. The Read More
Read More
How Business Debt Can Exempt You From the Bankruptcy Means Test
Chapter 7 is often the preferred form of bankruptcy relief for individuals, but not everyone qualifies. Most debtors must satisfy the “means test,” which is used to demonstrate that they have insufficient income to repay any portion of their debt. However, debtors who hold a large amount of business debt are exempt from the Chapter Read More
Read More
How Deducting Expenses Can Help You Pass the Chapter 7 Means Test
To qualify for Chapter 7 bankruptcy, most people must pass the means test, which looks at their income, expenses and family size to determine if they have any disposable income that could be used to repay debts. Passing the means test often requires making optimal use of allowable expense deductions. The first step in the Read More
Read More
What a Bankruptcy Attorney Can Do That You Probably Can’t
Individuals filing for bankruptcy have the right to represent themselves. Some people are tempted to do so, reasoning that bankruptcy consists of simply filling out forms. However, in most cases, going into bankruptcy without an attorney is a risky course of action. According to recent statistics, people who file Chapter 7 bankruptcy petitions through legal Read More
Read More
Bankruptcy Abuse Prevention Law Can Limit Discharge of Credit Card Debt
The purpose of bankruptcy is to give financially overwhelmed individuals a fresh start and the chance to repair their credit. Many types of consumer debts can be discharged (canceled) in bankruptcy, including personal loans, medical bills, past due utility charges and, quite commonly, credit card accounts. In fact, much of the debt in Chapter 7 Read More
Read More
Using Chapter 7 to Protect Your Personal and Business Assets
While Chapter 7 is commonly thought of as consumer bankruptcy, debtors often have business debt as well. Many people operate small businesses full-time or have “side hustle” businesses they run on a part-time basis. When entrepreneurs face overwhelming debt associated with the business, they may look to bankruptcy as a remedy. A common question is Read More
Read More
Can You Convert a Chapter 13 to a Chapter 7 Bankruptcy?
Individual debtors who want to take advantage of bankruptcy law to reduce or wipe out their debt burden have two options. One is Chapter 13 bankruptcy, which is designed for debtors who don’t want to sell off their property to pay off their creditors but instead want to make repayment of their debts more manageable. Read More
Read More
How Filing for Medical Bankruptcy Can Help With Health Insurance
Unmanageable debt due to medical expenses is a major reason why Americans fall into financial hardship. If you’re in this situation, you might not even be able to afford health insurance, with the result that your medical bills continue to mount. Filing for bankruptcy can alleviate your economic burdens and offer you a fresh start. Read More
Read MoreHow Chapter 7 Can Provide a Fresh Start During the Pandemic
The coronavirus pandemic has had devastating financial effects on many families as a result of widespread job losses, business curtailments and company closures. If you have become burdened with overwhelming debt during these harsh times, a Chapter 7 bankruptcy may offer you the fresh start you need to move forward. If you are suffering loss Read More
Read MoreWhat to Do If You Fail the Chapter 7 Means Test
In order to file for bankruptcy protection under Chapter 7, you must be able to show that your average monthly income for the six months prior to your bankruptcy filing is below the median income for a household of your size in your state. This is because Chapter 7 bankruptcy is meant for people with Read More
Read More
-
5.0/5.0Best lawyers I ever work with thanks Jeff field & associates
-
5.0/5.0
I was very pleased with his service...he made it easy and very helpful
-
5.0/5.0
During my hardships, Jeff Fields & Associates made me feel not judged and made the whole process stress free. They are the best!
-
5.0/5.0
Very quick and work with all clients on getting out and starting a new.
-
5.0/5.0
Thank you Field and Associates for the ease and the professional advice and filing of my bankruptcy. I will recommend you to all family and friends that find them selves in the same position I was in.
Please fill out the form below and one of our attorneys will contact you.
