The implementation of the Bankruptcy Means Test in 2005 was greeted with mixed reviews by individuals, groups and attorneys alike. While some claimed it was beneficial in ensuring those with means (pun intended) did not abuse Chapter 7 Bankruptcy, others claimed it was a means of stigmatizing the poor, driving up administrations costs and creating general confusion. Any bankruptcy lawyer in Alexandria, VA is certain to agree that it has made filing for bankruptcy more complex.
What Is the Bankruptcy Means Test?
The Bankruptcy Means Test is a mathematical way of determining whether you qualify for a specific form of bankruptcy.
How Does It Work?
A formula is employed contriving a relationship between the average amount of income you made during the six calendar months prior to filing for bankruptcy and the perceived state median. The administrative officials will take the figures you supply for the Means Test. They will then deduct certain monthly expenses from your monthly average. The amount they arrive at – your disposable income, is then compared to the median. As a result, the higher your disposable income, the less likely you are to receive the go ahead to file for Chapter 7 Bankruptcy.
Who Has to Take the Means Test in Alexandria, VA?
Anyone who intends to file for Chapter 7 Bankruptcy is required to take the Means Test. If, however, the average income of the potential filer for every month of the six months prior to filling in the Means Test is below what has been established as the median income in Alexandria, VA, it is not necessary to fill out the rest of the form. If the average income of the six months is found to be above the Alexandria, VA median, you have two choices:
* Consider applying for Chapter 13 Bankruptcy
* Talk to a bankruptcy lawyer about further documentation and arguments
* Reconsider applying for bankruptcy at all and seek other options such as debt consolidation
Is It Actually Important?
Any bankruptcy lawyer will tell you the same thing. Filling out the Means Test forms is extremely important. It will provide the officials, including the estate trustee, with the information to make a decision on what type of bankruptcy you will qualify for. The results of the Means Test will indicate to them whether you should and could file under Chapter 7 or Chapter 13 Bankruptcy.
Talk to a Bankruptcy Lawyer
The complexity of the Means Test necessitates you need to take the right action. Talk to a bankruptcy lawyer. In Alexandria, VA a qualified and knowledgeable attorney will make sure you understand and complete the forms in a fashion that will help you in filing for the right type of bankruptcy. Visit Andrews Law Firm for more details.
