A Chapter 7 bankruptcy can help those who are struggling financially, but not everyone qualifies to apply for one. To successfully file for Chapter 7 bankruptcy, you must pass a means test. A means test is the method by which the court determines whether you can pay back your creditors. Click here for facts about Greenbelt, MD.
Qualifying for the Means Test
You can’t file for this type of bankruptcy unless you can prove that you can’t repay what you owe. This may be due to your debts being too large for you to handle or because you are unemployed or suffered a medical ailment that has left you unable to work. Click here to read about Tips to Hiring Indispensable Chapter 7 Bankruptcy Attorney in Greenbelt.
What Means Test Determines
The means test process determines your monthly income, measured against the average for a family of your size in Maryland. If your income is lower than average, you are likely to qualify for Chapter 7. Also, if your average monthly income is higher than the average for the state, you may still be able to qualify if you can show that you do not have enough disposable income to pay your creditors.
If you don’t pass the means test, you may be able to file for Chapter 7 bankruptcy under other available tests, or you may be able to file for Chapter 13 Bankruptcy.
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