Understanding the Means Test
If you are weighed down with loads of debt, the best option for you may very well be to file for bankruptcy. Contrary to popular belief, bankruptcy is not a damaging action to take as it eliminates your debts and allows you to rebuild your credit and finances from scratch. There is more than one form of bankruptcy and in order to determine which kind you are eligible to file for, you must take what is known as the means test.
In basic terms, the means test calculates your ability or inability to repay your debts by comparing your amount of income to your expenditures. These expenditures must be important living expenses such as food, clothing, utilities, transportation, medicine, etc. Any expenses that are not considered vital are not taken into account. Once your monthly expenditures are deducted from your monthly income, it can be determined whether or not you can afford to repay your debts.
If you have no income due to job loss or if you have extreme debts due to sudden injury, illness, a means test may prove you eligible for Chapter 7 bankruptcy. This allows you to sell all property that is not considered a bankruptcy exemption and use the profit towards your debt, at which point the rest is discharged.
In the case that you have a steady income, a means test may consider you eligible to file under Chapter 13 Bankruptcy. This type of bankruptcy sets up a repayment plan over the course of three to five years and discharges any remaining debts after the term is up. To learn more about bankruptcy or any alternative options, call Cherney Law Firm LLC.
To find out how a Marietta bankruptcy attorney could help you take a means test and pursue the most beneficial form of debt relief, call my firm for a free case evaluation. I have represented individuals in bankruptcy cases since 2006 and I will seek to obtain the most favorable results possible for your situation. Each of my firm’s clients receives my full attention and dedication, meaning that you should never feel lost or confused during the bankruptcy process. To find out more, call now and schedule an appointment for your consultation. We offer weekend appointments in addition to our normal weekday hours to make it easier for you to get the help you need.