If you are struggling with paying off your debts, there is a way out if you qualify for Chapter 7 bankruptcy. You must be able to pass a means test to determine if you are qualified or not. Below, you will find out how a Chapter 7 means test is used to determine if you are eligible to file bankruptcy and what to expect if you pass:
How is a Means Test Used for Chapter 7 Bankruptcy Eligibility?
A means test is used for determining if you are eligible for Chapter 7 bankruptcy by calculating your income. The key to passing the test is not making over the medium income level that is set for your state. The number of dependents living in your household also factors into whether or not you can pass the means test.
You don't have to feel depressed if you make over the medium income, as there is still the possibility that you are eligible for Chapter 7 bankruptcy. If you are in a financial situation where the majority of your income is going towards bills and other living expenses, it means that you still don't have much disposal income each month.
You can hire a bankruptcy attorney to assist you will convincing the court that you should be forgiven for your debts.
What Should be Expected if the Means Test is Passed?
Upon passing the means test, an attorney can file a petition with the court to get the Chapter 7 bankruptcy process started. You can file without the help of an attorney, but you may see better results with a legal professional by your side. A trustee will be appointed to handle your case by a judge before you can be forgiven for your debts.
The appointee will come up with a solution to make sure your creditors are satisfied, which may include selling some of your assets. He or she will have to decide which of your debts should be forgiven and which of them should be paid off. A meeting between the appointee, you and your lawyer may be conducted with your creditors before the process is final.
It is a good idea to practice good spending habits after filing for Chapter 7 bankruptcy. Your attorney may recommend a credit counselor to help you get back on track. Filing bankruptcy will get creditors off of your back so you can have a peace of mind! To learn more, contact a professional like Kreisler Law PC Chicago to ask and learn more.
