Queens Bankruptcy – Taking the Means Test
Bankruptcy and the Means Test
A means test is used to calculate your eligibility for Chapter 7 or Chapter 13 bankruptcy by looking at your “means” to pay, or your disposable income. The means test keeps those making a higher income from filing for Chapter 7 bankruptcy.
If your debt is primarily consumer debt and not business debt, you are required to take a means test. After entering your income and expenses, the test will then see if you have enough disposable income to make payments to creditors in a Chapter 13 bankruptcy plan. In a Chapter 13 bankruptcy, you go through a debt restructuring process, or set up a repayment plan to pay back your debt over time. If you qualify for Chapter 7 bankruptcy, your non-exempt assets are sold and the proceeds go towards ridding you of your debt.
The means test involves uncovering a lot of financial information, along with understanding what IRS-approved allowances you can enter. If you are considering bankruptcy or want to find a debt relief program that fits you, contact Queens bankruptcy attorney Bruce Feinstein, Esq. He will be able to explain the bankruptcy process, administer a means test, and help you determine the best plan of action for getting out of debt, whether it is filing for bankruptcy or using bankruptcy alternatives.
Queens Bankruptcy Attorney
The Law Offices of Bruce Feinstein, Esq. have helped hundreds of clients facing growing debt. They offer sound legal advice and use over a decade of experience in the courtroom to make sure their clients get the best possible outcome when they are faced with foreclosure, creditor calls, and wage garnishment. Bruce Feinstein, Esq. can take you through the bankruptcy process, from taking a means test an filing a bankruptcy petition to getting your debt discharged so you can move on with your life. And if you have questions along the way, he will take the time to provide one-on-one service to make sure you have the support you need. The firm can provide quality representation and unparalleled advocacy during this difficult time.