A Bankruptcy Attorney in Tampa Explains the "Means Test"
If serious financial problems have left you nowhere to turn, your bankruptcy attorney in Tampa may have discussed filing for bankruptcy as a possible solution. However, there are some requirements you'll have to meet before you can take this step, especially when filing Chapter 7, or liquidation bankruptcy. In order to be eligible for a Chapter 7 bankruptcy, there are income limits you must meet that have been put into place to prevent filers with high incomes from using – and abusing – this option. How do you know if you meet the requirements?
The answer, as your bankruptcy attorney in Tampa will tell you, is through a "means test." The means test is a formula to gauge whether Chapter 7 filers truly can't pay their debts. Higher income filers that can't pass this test must instead file for Chapter 13 bankruptcy, which requires them to still pay a portion of their debts. Those who can pass the means test, however, will be able to wipe their debts clean with a Chapter 7 bankruptcy. The means test measures this capability by deducting certain expenses from your current monthly income to arrive at an estimate of your disposable income. The lower your disposable income, the better your odds of being able to file for Chapter 7 bankruptcy with the help of a bankruptcy attorney in Tampa.
Before you can even submit to a means test, you must first find out whether your income is more or less than the median income in your state. Your bankruptcy attorney in Tampa can help you take this step, as well as guide you through the process of taking the means test, and then continue with your bankruptcy proceedings. To speak with Tampa bankruptcy attorneys who are experienced with the means test and other key components of a bankruptcy filing, contact Yesner & Boss, P.L. today to set up a free consultation.
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