The Chapter 7 Means Test
In previous years, people could acquire large amounts of debt and claim Chapter 7 bankruptcy. Consequently, people capable of paying off their debt themselves would get a fresh start. Development of the Chapter 7 means test was a measure to ensure that people granted Chapter 7 bankruptcy are in fact those that will not be able to pay off the debt alone. Those who fail the means test generally opt for Chapter 13 bankruptcy.
If you are considering filing for bankruptcy, contact the Cincinnati bankruptcy attorneys at the law offices of Ryan J. Really, LLC. We can offer the skilled, compassionate, and experienced guidance that you need to help you to determine whether bankruptcy might be the best solution to your current state of financial distress. Call (513) 621-0999 today so that you can start working to make your financial troubles go away.
Factors Involved in the Means Test
The means test takes into consideration the following:
- A filer’s current monthly income
- Their expenses
- Remaining disposable income
These figures are calibrated against a particular state’s median monthly and disposable income figure calculations. If the disposable income of the person is considerably greater than the median disposable income of their state, they will most likely not be granted Chapter 7.
The decision to file for bankruptcy protection is never easy, but it is sometimes the right choice to make. The negative connotation associated with bankruptcy causes many people to avoid this option, but often it can be a fresh start for someone with debts too significant to pay back on his or her income. To learn whether you may qualify to file for Chapter 7 bankruptcy, contact a Cincinnati bankruptcy attorney at the law office of Ryan J. Really, LLC, at (513) 621-0999.