Getting Help With The Chapter 7 Means Test From A Tampa Bankruptcy Attorney
In some cases debtors overwhelmed with debt can benefit from filing for Chapter 7 bankruptcy protection. However, there are many pitfalls and consequences to Chapter 7 bankruptcy, which a debtor should be aware of before filing for Chapter 7. A debtor considering filing for Chapter 7 should always speak with a Tampa bankruptcy lawyer before taking any action. A Tampa bankruptcy attorney can advise his client on the process of Chapter 7 bankruptcy and the possible consequences that may arise from filing for Chapter 7.
Under current bankruptcy law, a debtor must prove he is eligible for Chapter 7 protection. In order to be eligible, the Tampa bankruptcy lawyer must demonstrate that his client satisfies the means test. The policy behind the means test is to reserve Chapter 7 bankruptcy protection for individuals who truly need it and cannot afford a Chapter 13 bankruptcy. A Chapter 13 bankruptcy requires debtors to make monthly payments to creditors under a court approved payment plan. On the other hand, a Chapter 7 bankruptcy does not require the debtor to make monthly payments to creditors under a payment plan. Instead, a Chapter 7 bankruptcy will liquidate the borrower's nonexempt assets, and use the proceeds of the sale to repay the borrower's creditors.
The means test is very complex and can be daunting to many borrowers seeking Chapter 7 protection. The Chapter 7 means test involves numerous steps and requires a comprehensive understanding of Chapter 7 bankruptcy law. However, a Tampa bankruptcy attorney can help an applicant successfully navigate the means test. An experienced Tampa bankruptcy lawyer should be able to determine if the debtor satisfies the means test by reviewing the debtor's financial documents.
Generally, the first step a Tampa bankruptcy lawyer will take in determining a client's eligibility is calculating the client's average income for the most recent 6 months. If the average income is below the State's median income the debtor will normally qualify for Chapter 7 bankruptcy. However, having an income below the State's median income does not guarantee eligibility for Chapter 7. There are many situations in which a debtor with an average income below the State's median income will be ineligible for Chapter 7.
For more help on determining if you qualify for Chapter 7 protection contact a Tampa bankruptcy lawyer in your area. A Tampa bankruptcy attorney can explain the Chapter 7 requirements in detail and help answer your legal questions.
Under current bankruptcy law, a debtor must prove he is eligible for Chapter 7 protection. In order to be eligible, the Tampa bankruptcy lawyer must demonstrate that his client satisfies the means test. The policy behind the means test is to reserve Chapter 7 bankruptcy protection for individuals who truly need it and cannot afford a Chapter 13 bankruptcy. A Chapter 13 bankruptcy requires debtors to make monthly payments to creditors under a court approved payment plan. On the other hand, a Chapter 7 bankruptcy does not require the debtor to make monthly payments to creditors under a payment plan. Instead, a Chapter 7 bankruptcy will liquidate the borrower's nonexempt assets, and use the proceeds of the sale to repay the borrower's creditors.
The means test is very complex and can be daunting to many borrowers seeking Chapter 7 protection. The Chapter 7 means test involves numerous steps and requires a comprehensive understanding of Chapter 7 bankruptcy law. However, a Tampa bankruptcy attorney can help an applicant successfully navigate the means test. An experienced Tampa bankruptcy lawyer should be able to determine if the debtor satisfies the means test by reviewing the debtor's financial documents.
Generally, the first step a Tampa bankruptcy lawyer will take in determining a client's eligibility is calculating the client's average income for the most recent 6 months. If the average income is below the State's median income the debtor will normally qualify for Chapter 7 bankruptcy. However, having an income below the State's median income does not guarantee eligibility for Chapter 7. There are many situations in which a debtor with an average income below the State's median income will be ineligible for Chapter 7.
For more help on determining if you qualify for Chapter 7 protection contact a Tampa bankruptcy lawyer in your area. A Tampa bankruptcy attorney can explain the Chapter 7 requirements in detail and help answer your legal questions.
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