Means Test Helps Debtors Determine, am I Qualified to File Chapter 7?
How do you make sure you're bankruptcy qualified, in the very first instance? As a rule, most people who want to file for bankruptcy would ordinarily like and prefer to be able to file the Chapter 7 type, assuming they could, as that would allow them to discharge most of their debts outright, and not have to pay them back. However, to be able to file for Chapter 7 bankruptcy, you must FIRST qualify to do so under the Chapter 7 means test requirements. And it would help if you can have means test made simple and a simple formula for doing that.
Portland Bankruptcy Attorney, Bankruptcy Lawyers In Chicago, Bankruptcy Attorney Houston,
FIRST, WHAT IS THE MEANS TEST IN BANKRUPTCY?
Basically, that's the formula by which a debtor can become bankruptcy qualified. Usually applicable in personal bankruptcies involving the consumer types of debt, the means test is basically a series of financial calculations ("tests") done by filling out and completing a form, the objective of which is to determine if the consumer completing the form (or for whom it is being completed), qualifies for bankruptcy. And whether he or she qualifies to file under Chapter 7, or whether he/she is condemned to file under Chapter 13 - meaning those who are deemed to have the financial capacity to pay some money on their indebtedness to their creditors.
First, the means test would compare your income to the "median income" of other residents in your state. If your income is lower than the median income in your state, then it means you can file for Chapter 7 bankruptcy. Next, however, if your income is greater than your state's median income, other calculations regarding your income and allowable expenses would then have to be made, the sum total of which would determine whether or not you can file for Chapter 7 bankruptcy.
MEANS TEST SHOULD BE A SIMPLE & EASY PROCEDURE
Means testing has usually been touted by bankruptcy attorneys and other professionals in the trade as a "difficult" and complicated operation, often leading to high costs and charges levied on their clients for providing this service. And sure, in all fairness and objectivity, true, the means test operation is clearly one of the most tedious and bothersome operations in bankruptcy; it is unduly involved and detailed, repetitive, cumbersome and extremely time-consuming. Certainly, as it was designed by its drafters, apparently the most primary thought in the minds of its drafters is to make it as complicated, confusing and difficult as possible using it. However, the central point of this article is that, at least with a little knowledge and understanding, completing the means testing form and procedure is actually simple and straightforward. You can still have means test made simple, and get cheap online means testing the easy way.
This article gives a brief but simple formula of the process involved in doing the testing procedures, and is aimed at showing that with a formula of means test made simple, a debtor can get cheap online means testing the easy way. And without much cost or expense.
The following is a simple step-by-step, means test made simple formula showing the process involved in working out the test calculations:
TEST # 1:
Is the debtor's family earning above the "medium income" (i.e., the average income) designated for the family size for his state? If the answer is "No," then Chapter 7 bankruptcy can be filed by the debtor!
TEST # 2:
If the answer is "Yes" to TEST # 1 above, is the monthly income you (the debtor) have, in excess of $166.66 per month to cover payment of $10,000 of debt over a 5 year period?
If the answer is "No," then you should proceed to answer another question below, but if it is "Yes," then Chapter 7 bankruptcy cannot be filed by the debtor, but Chapter 13 bankruptcy may be filed!
TEST # 3:
If the answer is "No" to the TEST # 2, is the excess income you have greater than $100 per month to cover payment of at least 25% of your unsecured debt over the next 60 months? If the answer is "No," you can file Chapter 7; if it is "Yes," then chapter 7 cannot be filed by the debtor but Chapter 13 may be filed!
THE BIG PROBLEM: But how do you determine how much money a debtor is supposedly "able" to put up toward repayment of his "unsecured" debts - the question asked in Test #3 above? That is often the problem in doing means testing - how you determine how much a debtor can "afford" to pay towards his unsecured debts, meaning primarily the credit cards.
How do you calculate this? The formula for it is actually simple:
Income - Living Expenses = Money to be Applied Towards Debts
However, when it comes to this aspect, though the main formula is simple, unfortunately how one calculates the debtor's income and living expenses, could get unnecessarily complicated! Fortunately for debtors, however, they really don't necessarily have to bother with addressing that aspect these days. There have developed in recent times some specialist companies and outfits online who're able to assure, as a matter of regular routine, that the means test is made simple, and that the average debtor today can readily get cheap online testing the easy way - affordably. These online companies are usually manned by experienced hands and specialists in financial calculations who are trained and experienced in the subject, and concentrate solely in bankruptcy means testing - on cheap and affordable basis for debtors.
FOR MORE INFORMATION
To learn more information about this subject matter, or about how to get a cheap or real free online means testing the easy way provider that will provide a high quality test document to determine whether you're eligible to file bankruptcy, but without hassle or hype and at the most inexpensive and affordable costs, please visit this site: http://www.FreeBankruptcyMeansTest.com
Bankruptcy Attorney Dallas Texas
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Attorney Dallas Texas
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment