Palmdale Means Test Lawyers
Bankruptcy has long been an effective remedy for people who are struggling with debt and see no end in sight to the bills that pile up. Unfortunately, the process lends itself to some abuses. Higher net worth individuals could take advantage of Chapter 7 bankruptcy to eliminate their debts and walk away, even when they are able to pay. To prevent abuses and protect creditors that suffer significant losses, lawmakers created the Means Test for eligibility.
If you are considering filing for bankruptcy, it is important to understand the basics of the Means Test. It will affect a Chapter 7 filing, with a lesser impact on a Chapter 13 case. However, you can rely on our team at Wadhwani & Shanfeld to handle the specific tasks. We have meticulous knowledge of bankruptcy laws, so we will counsel you on eligibility and develop a strategy to help you qualify. Please contact us to schedule a consultation with a Palmdale Means Test lawyer, and read on for a helpful overview.
Qualifying for Chapter 7
Your income is the most important factor when looking at Chapter 7 eligibility, and the Means Test is part of the analysis. To qualify for bankruptcy discharge, you must meet one of two criteria.
- Your earnings are below the state median income level, so you are automatically eligible for Chapter 7 and do not need further proof.
- If you earn above the threshold, you will go through the Means Test. The assessment is your disposable income after expenses are subtracted from your earnings. With proper documentation on the costs you pay every month, it may be possible to lower your disposable income to an amount that qualifies for Chapter 7.
The Means Test also enters the picture with Chapter 13 debt reorganization. Your debt repayment plan will be three years if you are under the state median, and it is five years if you qualify through the Means Test.
Legal Help with Bankruptcy Strategies
Because the Means Test is so central to Chapter 7 cases, our objective at Wadhwani & Shanfeld is to meet the criteria through all possible strategies. We will carefully prepare the bankruptcy petition, along with the Form 122A-2 Chapter 7 Means Test Calculation. It may seem as simple as filling in some blanks, but this form is complicated. It could also make or break your eligibility for Chapter 7.
In addition, our Southern California Chapter 7 lawyers will handle additional tasks with bankruptcy, including going to court and finalizing the case. We are also prepared to assist with the Means Test as it pertains to the time period of Chapter 13 bankruptcy repayment plans.
Consult with a Palmdale Means Test Lawyer to Learn More
When Chapter 7 is a suitable option for resolving debt, you will face the Means Test to prove that you qualify. Wadhwani & Shanfeld will work with you on eligibility, and we can advise you on Chapter 13. Please contact us to set up a consultation with a Southern California bankruptcy lawyer today.
