Bankruptcy: Understanding the Means Test

What is the Means Test?

If you hope to file for Chapter 7 bankruptcy, it is important to understand the requirements that you must fulfill. Under recent changes to federal law, it is now necessary to undergo an examination of your assets in order to qualify for liquidation debt relief. This assessment is referred to as a 'means test'.

Passing the Means Test with Help from a San Diego Bankruptcy Attorney

For those clients wishing to pursue debt discharge utilizing Chapter 7, it is imperative to understand the different components of the means test. Before making any decisions affecting your financial future, seek the advice of an experienced bankruptcy attorney. Only a trained professional has the necessary knowledge of the legal nuances involved in pursuing a bankruptcy claim to ensure you make the correct judgment.

Passing the means test requires completion of two different assessments. Everyone who wishes to file for Chapter 7 bankruptcy will have to undergo the first part. This section consists of a comparison of your average income with the median income for a household of the same size in your area. This is intended to ensure that debtors with the ability to pay off their debts through Chapter 13 are not abusing liquidation to avoid paying their creditors.

If your income is less than the median, you automatically qualify to file under Chapter 7. If not, you will have to pass the second part of the test, which requires a more in depth of your finances and the specific debts you are attempting to discharge. A dedicated San Diego bankruptcy lawyer can guide you more closely through this process.

Speak With a Means Test Attorney Today For a Free Consultation

To ensure that you have the best chance of passing the means test and pursuing Chapter 7, it is imperative to retain the service if a skilled bankruptcy lawyer in San Diego. With the help of the legal team at the Law Office of Jon M. Cooper, you can benefit from the wealth of experience we possess navigating the bankruptcy process. Arm yourself with the knowledge necessary to pursue debt relief today!

For a free initial consultation, contact a San Diego means test attorney with our firm as soon as possible.