Taking the Chapter 7 Means Test in Indianapolis
Do You Qualify for Chapter 7 bankruptcy?
Even if you have decided to file for bankruptcy, you must still determine if you qualify. The most common form of bankruptcy is Chapter 7, which in essence wipes out your unsecured debts and protects certain assets. You will need to complete and submit the chapter 7 means test to see if you qualify.
At our Indianapolis bankruptcy law firm, Jackson & Oglesby Law LLC, we have the experience and knowledge to help you through the bankruptcy process in order to regain control of your financial status and clear the way to a better future.
The means test determines if you qualify to file for Chapter 7 bankruptcy. This form of debt relief can significantly erase a large portion of your debt. It is for those individuals who actually do not have the ability to pay off what they owe because they just do not earn enough income.
The test involves seeing how your income compares to the median income in the state for other individuals who have a family with a similar size as yours. If you are at or below the median income level, you will most likely qualify for Chapter 7. If you don't, you may still be able to file for Chapter 13 bankruptcy.
How Your "Disposable Income" Is Calculated
The amount of your disposable income is determined by subtracting certain IRS-approved expenses from your income. Then, this amount of disposable income is estimated over the next five years. You will qualify for Chapter 7 bankruptcy if it is equal to or less than $6,000, or $100 a month.
If it is more than $10,000 over the five-year projected period, you probably won't qualify; however, there are special circumstances that may still allow it. If it is between $6,000 and $10,000, more calculations are done to determine whether or not that amount will be enough to pay a portion of your unsecured debt.
Eliminate the Stress of Debt With the Right Solution
Huge debt is a major source of stress. We understand what you are going through. The constant worry permeates other aspects of your life, including your relationships and your ability to work. With our help, you can find the debt relief solution that works best for you and your family. We offer competitive rates for our personalized service, and we are available during working hours as well as evenings. It's time to enlist effective legal help you can trust to turn around your situation and start new.
Your Indianapolis bankruptcy lawyer can walk you through the means test and answer any questions that you may have. Call now at (888) 713-5148.