For Chapter 7, You Have To Qualify Under The Means Test

In April of 2005, President Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act. This act instituted a means test to make sure people who were filing bankruptcy were legitimately unable to pay their debts back. Prior to that, people could choose whether they wanted to file Chapter 7 or Chapter 13. Most people chose Chapter 7 because it eliminates all of your unsecured debt without having to pay anything back. If you want to file Chapter 7 bankruptcy, you now have to qualify under the means test.

The attorneys of Lefkovitz & Lefkovitz can help you determine whether you qualify for Chapter 7 and explain all of your options for debt relief. We have helped thousands of people in Nashville and the surrounding areas get out from under their mountains of debt and on to a fresh start in their financial lives. Our firm takes the cases that most lawyers turn away. We know how to find the right solution for your financial problems.

So How Do I Qualify?

The Chapter 7 bankruptcy means test looks at whether you have the disposable income, or means, to pay back some or all of your debt. The test asks some basic questions about your current income and how much you pay out every month, as well as your current debts, including:

  • Is your current income below the median for your area? If so, then you qualify for Chapter 7. Median requirements for Tennessee vary depending on how many people are in your family.
  • Do you have enough disposable income to pay some debts? This isn't as simple as you think. There are specific guidelines as to "allowed monthly expenses" that may or may not be the same as the many bills you owe.

We will help you calculate whether you are under or over the allotted amount. If you are under this amount, Chapter 7 is an option. If you are over this amount, you are still able to file Chapter 13. Regardless of whether you qualify for Chapter 7, we want to find the right bankruptcy solution for you, so you never have to go through this again.

Let Us Find The Best Solution For Your Financial Woes

Contact our office in Nashville at 615-686-2279 or our office in Cookeville at 931-400-2218 to schedule your free consultation. You can also reach us via email.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.