The Means Test and Chapter 7 Bankruptcy
If you find yourself suffocating in debt, filing Chapter 7 bankruptcy can dramatically change your life. However, before you are able to file Chapter 7 bankruptcy, you will be subjected to the means test, which attempts to evaluate one’s true degree of financial need. The test was developed in order to identify individuals who are attempting to abuse the bankruptcy system.
At the Law Office of Adam G. Young, PLC, we understand that you are facing extraordinary financial challenges, quite possibly through no fault of your own. We are committed to helping our clients to identify and pursue the appropriate debt relief method for their situation. In many cases, Chapter 7 bankruptcy is the right option, and we can advise you regarding your means test eligibility. Contact our Lafayette Chapter 7 bankruptcy attorneys today at 337-261-8800.
The Means Test
Chapter 7 bankruptcy is reserved for those who truly need financial help to deal with their debt. The means test is therefore used in order to determine whether the applicant has great financial need. The test will:
- Assess your debt
- Assess your monthly income
- Assess your assets
After the means test has evaluated your comprehensive financial situation based on these three main factors, a determination will be made as to whether your Chapter 7 filing can proceed.
If you find yourself in truly dire financial circumstances, filing Chapter 7 bankruptcy may be your best option. To learn more about the means test and Chapter 7 bankruptcy, contact the Lafayette Chapter 7 bankruptcy attorneys at the Law Office of Adam G. Young, PLC, by calling 337-261-8800.