Chapter 7 Means Test

A fresh start is ideal for people that are drowning in debt, but in order to proceed with this type of filing you must be eligible to do so. To qualify for Chapter 7 in the Inland Empire you must first pass a “means test” which was put in place by a new law set forth by the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) back in 2005. If you do not pass this particular test because you fail to meet the specified requirements, such as collecting a minimal income, you may be obligated to repay some of your debts which would make you eligible to file for Chapter 13. Fulfilling the criteria for qualification is dependent on the individual circumstances of each case.

What is the Means Test?

The means test is an evaluation of your income, expenses, and secured debt to see if you qualify for a Chapter 7 bankruptcy. If your income is above the median income in Massachusetts, you may qualify for Chapter 7; however, you must provide detailed information about your financial situation in order to find out if you qualify. If your income is above the median income in Southern California, you may still be eligible for Chapter 7 bankruptcy.

What Are My Alternatives?

If you do not qualify for a Chapter 7 bankruptcy, Hedtke Law Firm can work with you to determine if a Chapter 13 might be a better option. Hedtke Law Firm can work with your creditors to create a repayment plan to submit to the bankruptcy court where you will be able to pay back the debt over time. Contact Hedtke Law Firm and we will assist you in determining which bankruptcy would be best for you.

To schedule a free consultation, please call Hedtke Law Firm today at our Upland office at: 909 579-2233 or Chino office: 909 457 0183 or Moreno Valley office at: 951 746 1722.