A Means Test is a requirement bankruptcy filers must complete prior to attending bankruptcy court. It is used to determine the eligibility of individuals who file for Chapter 7. Enacted during a change in bankruptcy laws in 2005, the Means Test prevents wealthy individuals from filing Chapter 7. A Farmers Branch, Addison and Carrollton bankruptcy lawyer can help you fully understand what a Means Test encompasses.
What to Expect in a Means Test
Keep in mind the goal of a Means Test is to separate those who can make payments to their creditors from individuals who cannot repay their debts. A Means Test only applies to individuals who have consumer debt. An individual who has to take a Means Test must complete four sections. It is helpful to contact an experienced Farmers Branch, Addison and Carrollton bankruptcy attorney to ask more questions concerning the Means Test. The four sections to the Means Test help determine:
- Average monthly income 6 months prior to filing Chapter 7 — Income can include income from jobs, interest, dividends, royalties, pension and retirement income.
- Living expenses, determined by the IRS, for the individual who is filing — These expenses can include food, clothing, personal care, housing and utilities.
- How much money is needed to pay secured debts — This covers expenses for health and disability insurance, monthly educational expenses for dependents, and charity contributions.
- How much income is leftover — What amount leftover is considered disposable income and can be used to pay back secured debts.
Who can help you in a Means Test?
At NNK Legal Group PLLC, we help you during the most difficult times in bankruptcy cases. A Carrollton bankruptcy attorney can help you determine if you qualify for Chapter 7. Our staff will keep you informed in all areas of your case. With dedication, we strive to make sure your needs are met. If you are experiencing financial difficulties and need counseling, please contact an experienced Carrollton, The Colony, Lewisville, Plano and the Dallas metro area bankruptcy lawyer at our office to schedule a free initial consultation.
