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Chapter 7 bankruptcy requires filers to meet a strict set of qualifications. When you consult a bankruptcy attorney, they’ll discuss those qualifications, also known as a means test, with you. An inability to pay your monthly debts may qualify you for a Chapter 7 filing. Here’s what you should know.

How Will a Bankruptcy Attorney Determine If You Can Pass the Means Test?

The Department of Justice maintains the standards for determining if income alone qualifies you for a Chapter 7 filing. If you fall below an average income level based on the size of your family, you already qualify for Chapter 7 under federal bankruptcy law.

Even if you meet or exceed the average family income limits, you may still qualify for Chapter 7. The law permits you to deduct certain expenses from your income, allowing you to lower your earnings for the purpose of qualifying.

What Happens If You Fail the Means Test? Bankruptcy Attorney

The court may require you to disprove any presumption that you are abusing the law if you fail the means test. You may claim extenuating circumstances, for example. A natural disaster and unemployment may increase qualifying deductions.

A bankruptcy attorney will review various aspects of the means test with you before filing. A bankruptcy attorney also experienced in real estate and property law will competently analyze the total value of your assets. If you don’t qualify for a Chapter 7 filing, a lawyer will help you work out a repayment schedule, which you must submit if filing for bankruptcy under the Chapter 13 provisions of the bankruptcy code.

 

William A McWhorter has the experience to help you determine if you qualify for Chapter 7. As a bankruptcy attorney serving St. Clair County, AL, he will determine the best debt-relief option for your situation. To learn more about this Pell City-based firm’s areas of practice, visit their website, or schedule an initial consultation by calling (205) 338-4411.

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