The Means Test

Preparing for Chapter 7 Bankruptcy

Bankruptcy is a legal process that was designed to be a way out for individuals and businesses burdened by overwhelming amounts of debt. Unfortunately, many individuals may attempt to take advantage of the bankruptcy process in order to make a profit. This defeats the purpose of bankruptcy and prevents deserving individuals from receiving the help that they genuinely need. In order to ensure that no one takes advantage of bankruptcy, anyone who desires to file under Chapter 7 must first take what is known as the "means test."

How the Means Test Works

The Chapter 7 means test subtracts an individual's monthly living expenses and bills from his or her net monthly income in order to calculate the individual's disposable income. Anyone whose disposable income is lower than the state average passes the means test and can file for Chapter 7 bankruptcy.

Anyone who fails to pass the means test still has some form of steady income and can either file for Chapter 13 or repay their debts after obtaining credit counseling. If you are struggling to make your monthly payments and are considering bankruptcy, a Fairfax attorney can help you prepare for the test so that you can determine exactly which type of bankruptcy is best for your circumstances.

Hire a Fairfax Means Test Lawyer

If you need to learn whether or not you are eligible for Chapter 7 bankruptcy, Langone & Fasullo, PLLC can help you prepare for the means test. You will need to provide detailed and accurate information about yourself, your income, and your living expenses in order to get an accurate test result. With help from a Fairfax bankruptcy attorney, you can have confidence as you take the test. Contact our firm as soon as possible to learn more through a free case evaluation!