The Means Test in Bankruptcy

Taking the Bankruptcy Means Test

Part of the decision-making process for many people considering bankruptcy includes taking the Means Test. The purpose of the test is to determine your eligibility for Chapter 7, which is the liquidation of non-exempt assets to pay off creditors. Once your assets have been sold, any remaining debts will be discharged. The Means Test is used to establish whether or not you have any disposable income. If the test shows that you have sufficient disposable income to repay your creditors, you will be required to file for bankruptcy under Chapter 13, where you will be given the opportunity to restructure creditor payment plans.

A Detroit bankruptcy attorney from The Cartwright Law Firm can administer the Means Test, and answer any questions you have about the bankruptcy process. When taking the test, our firm will also make sure that the production expenses are deducted from your income, such as:

• Car payments
• Taxes
• Health Insurance
• Child care
• Medical expenses

We have successfully represented clients from Detroit, Southfield and Pontiac for over 10 years and will work hard to help you remedy your debt situation.

Detroit Bankruptcy Attorney

If you are heavily in debt and thinking about filing for bankruptcy, you will need to take the Means Test. There are two parts to the test, which starts by comparing your income to the average income of household of the same size. If you income is less than a household of the same size, the second part of the test will be administered to determine your disposable income. At the conclusion of the test, if there is sufficient money to pay back creditors, you will need to file for bankruptcy under Chapter 13.

Our firm knows the hardships a person goes through when they are unable to meet their financial obligations. We provide professional and caring legal assistance to help you begin a new life. Lawyers at our office are dedicated advocates who can help you through this stressful period.

Contact a Detroit bankruptcy lawyer for seasoned legal advice and assistance with the Means Test if you are considering filing for bankruptcy.