Learn About the Means Test with Groce & DeArmon
If you’re considering filing for bankruptcy, you’ve probably heard of the means test. The means test is meant to determine whether or not you’re eligible for filing for Chapter 7 bankruptcy. So what factors are considered in the means test? Today Groce & DeArmon is breaking down the means test on a surface level. At a certain point the means test computations become quite complicated, so if you need further clarification, be sure to schedule a free consultation at Groce & DeArmon.
How the Means Test Works
The first factor a means test will consider is your household income. If your monthly income is less than the median income for your state, then you automatically qualify for Chapter 7 bankruptcy. No further calculations are needed. So what if your income exceeds the monthly income? That’s where things get more complicated.
To put it simply, you have to determine what your disposable income is after expenses. To calculate this, you’ll look at how much you have left over after necessary monthly expenses. If the means test determines this amount to be enough to make payments on your debts, then you’ll fail the means test. If this happens, you may still be able to file for Chapter 13 in order to start repaying your debts.
Come to Groce & DeArmon to Discuss Your Options
There are many online calculators that will help you determine if you’re able to pass the means test. But even if you fail, don’t give up hope. You should always consult with a bankruptcy attorney to make sure you’ve explored all your options. In fact, a bankruptcy lawyer from Groce & DeArmon may be able to find out that you actually can pass the means test. As we said, the means test is complicated, which means it’s easy for someone to make a mistake when taking it. Also, you’ll need an attorney on your side when you’re ready to file for Chapter 7. We can help you through every step of the filing process.
Groce & DeArmon will make sure that we find the best solution for your bankruptcy needs. Even if you fail, we can help you file for Chapter 13, which may be the best option for your situation anyway. Contact us today or view the Groce & DeArmon website for more information. Give us a call when you’re ready to schedule your free consultation. Don’t suffer under the shadow of crushing debt any longer.