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San Antonio Bankruptcy - Chapter 7 Bankruptcy Means Test

Means Test for Filing Chapter 7 Bankruptcy

If you are in debt beyond your control and are considering filing for Chapter 7 Bankruptcy as a debt relief option, there is an important thing to consider, The Chapter 7 Bankruptcy means test. This Means Test will determine your eligibility for filing a Chapter 7 Bankruptcy. Prior to the latest bankruptcy legislation, almost anyone in financial trouble could file for Chapter 7 Bankruptcy. Now, if you want to file for Chapter 7 Bankruptcy you must first pass the Chapter 7 Bankruptcy means test before you can file. The Chapter 7 Bankruptcy means test determines whether or not you are eligible to file Chapter 7 through a variety of calculations. Ultimately, it determines if you’re financially able to make payments to your creditors in a Chapter 13 Bankruptcy as opposed to not making payments in a Chapter 7 Bankruptcy. If the person taking the Chapter 7 Bankruptcy means test does not have the means to repay their creditors according to the means test, they qualify for Chapter 7 bankruptcy.

If you think the Chapter 7 Bankruptcy means test will prevent you from filing Chapter 7, think again. Most people considering Chapter 7 bankruptcy have no trouble passing the means test. In fact, since the means testing was put in place, The Law Offices Of R.J.Atkinson has seen only a few instances where the means test prevented a client from filing for Chapter 7 Bankruptcy.

There are two basic parts to the Chapter 7 Bankruptcy Means Test. You will only have to pass one of these parts to be eligible to file for Chapter 7 Bankruptcy.

Means Test Part One: "Median Income"

This part of the Chapter 7 Bankruptcy Means Test is straight forward and a very simple. This part of the means test compares your average household income over the last six calendar months to the median income for your state, if your income is below the state median income; you qualify for Chapter 7 Liquidation under the Bankruptcy Code. If your household income is above the median, you have to pass part two of the means test.

Means Test Part Two: "Disposable Income"

This part of the Chapter 7 Bankruptcy the means test can become complicated, but for the most part it is also straight forward if you know your figures. Part two of the test deducts expenses from your income to determine how much you can pay towards your unsecured creditors over the next five years: for example if you lived in Houston, Texas, Harris County;

  • If you can pay at least $10,000 ($167 per month), you can't file for Chapter 7.
  • If you can pay at least $6,000 ($100 per month) and that is at least 25% of what you currently owe your unsecured creditors, you can't file for Chapter 7.
  • If your disposable income is less than $100 per month, you can file for Chapter 7.

The means test has certain deductions which are standard allowances based on the number of vehicles you operate, the number of people in your household, and the cost of living in Houston, Texas, Harris County. Depending on which county you live in the amounts may change but the method of calculation will not.

In addition, to the standard deductions in the means test, you can also deduct the full amount of certain actual expenses such as mortgage and vehicle loan payments. The Chapter 7 Bankruptcy Means Test is isn’t a difficult or complicated as it was made to sound in the media. It is actually a fairly straightforward process unless you have issues beyond the median income for a household of your size. The calculations involved in the Chapter 7 Bankruptcy Means Test can be confusing if you don’t understand the terms used in the means test or if your situation is on the edge of qualifying for Chapter 7. In these types of situations, The Law Offices Of R.J.Atkinson can help you to understand the test and help you throughout the process.

Finding out if you are eligible to file for Chapter 7 Bankruptcy is easy.

If you want to take the Chapter 7 Bankruptcy Means Test, Click Here — Take the test!

If you have more questions about the Bankruptcy Means Test or filing for Chapter 7 personal bankruptcy please contact The Law Offices of R.J.Atkinson for a free initial consultation to discuss your bankruptcy options. Whether you live in Austin, Houston, Dallas, San Antonio, San Marcos, Waco, College Station, Bryan, Dennison, Round Rock, Georgetown, Plano, Garland, Irving, McKinney, Carrolton, Denton, Katy, Richardson, Sugarland, New Braunfels, Seguin, Humble, Boerne, Kerrville, Addison, Arlington, Victoria, Sherman, or most anywhere else in Texas, we can help you determine your eligibility to file for Chapter 7 Bankruptcy with the Bankruptcy Means Test.

Call San Antonio Bankruptcy Lawyer R.J.Atkinson: 210-805-9909

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Filing Bankruptcy can sometimes be the fastest way to get out of debt and may be the most affordable way to get a fresh financial start. Chapter 7 Bankruptcy can quickly wipe out your debts, increase your credit score, stop wage garnishments, get rid of credit card debt, eliminate medical bills, stop payday loans, stop bill collectors, erase negative credit reporting, and reestablish new credit after bankruptcy. RJ Atkinson, San Antonio Bankruptcy Lawyer has payment plans to make filing Chapter 7 or Chapter 13 Bankruptcy affordable which include low cost flat fees for Chapter 7 that may be considered the cheapest bankruptcy attorney fees compared to fees other bankruptcy lawyer charge. Chapter 13 Bankruptcy can save your home from foreclosure, save your car from repossession, lower monthly payments, reduce interest rates, get rid of late fees, reduce credit card interest, payoff high credit card debt, raise your credit score, stop creditor harassment, get rid of debt, reduce debt, eliminate creditor calls at work, stop collection calls, start over financially, discharge debts and/or be debt free in 3 to 5 years. IRS tax problems, tax levies, wage garnishments, back taxes, payroll taxes, income taxes can often be handled in Chapter 13 bankruptcy. Divorce/Bankruptcy – past due child support arrears, alimony, spousal support, and divorce debt can often be handled in chapter 13 bankruptcy. The Law Offices of RJ Atkinson handles debt consolidation, loan modifications, credit card debt settlement, debt negotiation, lawsuit defense, IRS problems, credit card lawsuits, TROs temporary restraining orders to foreclosure, forbearance agreements to foreclosure, FDCPA Fair Debt Collection Practices Act lawsuits, FCRA Fair Credit Reporting Act lawsuits, credit report disputes, debt collection lawsuits, adversary complaints in bankruptcy, bankruptcies, foreclosure workouts, mortgage short sales, real estate property tax disputes, civil litigation, commercial litigation, tax lawsuits, small business bankruptcy, corporate bankruptcy, business creditor representation, and most every kind of debt related issue or financially based legal problem on a case by case basis.

San Antonio Bankruptcy Attorney at RJ Atkinson handles Personal Bankruptcy, Business Bankruptcy cases and discount legal services in and around San Antonio TX Bexar County, as well as in New Braunfels, Cibolo, Comfort, Bandera, Boerne, Kerrville, Hondo, Castroville, Medina, Poteet ,Pleasanton, Lytle, Live Oak, Leon Valley, Jourdanton, Floresville, La Vernia, Nixon, Poth, Stockdale, Carpenter, Ingram, Hunt, Center Point, Selma, Seguin, Schertz, Helotes, Garden Ridge, Hill Country Village, Fredericksburg, Uvalde, Alamo Heights, Terrell Hills, Universal City, or in the counties of Atascosa, Bandera, Bexar, Comal, Dimmit, Edwards, Frio, Gonzales, Guadalupe, Karnes, Kendall, Kenney, Kerr, Maverick, Medina, Real, Terrell, Uvalde, Val Verde, Wilson, Zavala.
Pursuant to 11 U.S.C. §528, “We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”
San Antonio Bankruptcy Lawyer 8000 I.H. 10 West, Suite 600, San Antonio, TX 78230-3868. Bankruptcy Phone: 210-805-9909