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One of the first steps you must take when filing for bankruptcy is to complete a "means" test. You must submit the results of this means test to the Bankruptcy Court.
The means test checks your income in order to determine your eligibility to file for bankruptcy. If your income is below the average for your state, then you can file for Chapter 7 bankruptcy without any problems.
However, if your income is above the state average, the calculations for the means test become more complex. The means test looks at your disposable income (the amount left over after paying your expenses). If your disposable income is too high, the Bankruptcy court may decide that you can pay off at least some of your debts, and prevent you from filing for Chapter 7 bankruptcy. You are still able to file Chapter 13 bankruptcy, however.
Wiki User
∙ 14y ago
Wiki User
∙ 13y agoThe means test is a quick measurement to see if you can file a chapter 7 (means test are not done in a chapter 13). The test is simply comparing your income to your state's average income based on family size. So if your income in a household of 3 (for example) is lower than the state's average income for a household of 3, you may file a chapter 7. If you "pass" the means test, there is no presumption of abuse. It is still possible to file a chapter 7 if your income is above the state average, but that would require a much more detailed financial analysis of your income and expenses. Your local BK courts usually have a link to find your average state income.
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Does a child's income have to be reported on the means test when the parents file bankruptcy?
No.
What are the steps towards filing bankrupt?
Good question. There is a common misconception that bankruptcy is simple to file for and everyone who does so gets approved. In reality, neither of those are true. Successfully completing a bankruptcy proceeding can be a difficult process. However, there is a good deal of work you must do before you can file for bankruptcy. First, you are required to complete a "means test." This is a complicated calculation that determines your ability to pay your creditors. It also compares your financial status to the average person in your area. If you pass this means test, you are allowed to file a Chapter 7 claim in Bankruptcy court - otherwise, you can only file a Chapter 13 bankruptcy claim. The next step involves undergoing credit counseling. Bankruptcy law requires that you complete this counseling before going through the bankruptcy process. Finally, you can file for bankruptcy. In addition to filing, you must submit a bundle of paperwork with the Bankruptcy court. This paperwork includes information about your income, debts, assets, and personal information.
You owe your sister money can you file bankruptcy on that loan?
If you file bankruptcy, you file bankruptcy on everything. You can not file bankruptcy on one loan.
What are the steps invoved in filing personal bankruptcy?
Filing for bankruptcy is a lot more complicated and time consuming that may initially meet the eye. My first suggestion would be to have a lawyer help you with the process. Successfully completing a bankruptcy proceeding can be a difficult process. However, there is a good deal of work you must do before you can file for bankruptcy. First, you are required to complete a "means test." This is a complicated calculation that determines your ability to pay your creditors. It also compares your financial status to the average person in your area. If you pass this means test, you are allowed to file a Chapter 7 claim in Bankruptcy court - otherwise, you can only file a Chapter 13 bankruptcy claim. The next step involves undergoing credit counseling. Bankruptcy law requires that you complete this counseling before going through the bankruptcy process. Finally, you can file for bankruptcy. In addition to filing, you must submit a bundle of paperwork with the Bankruptcy court. This paperwork includes information about your income, debts, assets, and personal information.
Did Deltona Corporation file bankruptcy?
No they never did file for bankruptcy
How many year after you file bankruptcy can you file bankruptcy aging?
If you are talking about a Chapter 7 bankruptcy, It takes 7 to 9 years after you can file bankruptcy again.
What does pending bankruptcy mean when trying to collect on a debt?
Bankruptcy Means Test and Household Size With a Pending Divorce .
Can you file bankruptcy on unemployment benefits?
AFAIK, Social Security has no impact on your ability to file bankruptcy. In fact, Social Security is excluded from the "means test", so unless you have substantial other income you should be able to file Chapter 7.
Did ballenger construction harlingen Texas file for bankruptcy?
No, they did not file for bankruptcy.
Why did General Motors ford and Chrysler file for bankruptcy?
They did not file for bankruptcy.
Do both parties on a joint mortgage have to file bankruptcy on a joint mortgage?
No, both parties on a joint mortgage do not need to file bankruptcy. They can file a joint bankruptcy or a single bankruptcy.
What companies have file bankruptcy in 2008?
what companies did file a bankruptcy in 2005,2006 and 2007.
