BANKRUPTCY MEANS TEST: WHAT IS IT?
The Bankruptcy Means Test has been used for 10+ years now, but it can still be a source of confusion. Learning what the practical application of this test is, and how it applies to your case is the first step.
What is the Bankruptcy Means Test?
The Bankruptcy Means Test helps determine if you have the ability to pay off some or all of the debts that are owed to creditors. The means test is usually a necessary requirement if you want to file for bankruptcy.
Who Needs to Fill Out the Test?
Those who file Chapter 7 Bankruptcy may be required to take the Means Test. However, there may be instances where you will not need to take the test at all.
Most individuals who file under chapter 7 of the bankruptcy code will pass the means test, but it is possible to fail.
What Happens if You Fail the Means Test?
f you are filing Chapter 7 bankruptcy, what happens if you fail the means test? Will it stop you from getting any form of debt relief or bankruptcy protection? Does it mean you have to file under Chapter 13 Bankruptcy instead?
Legal cases are complex and the actual outcome of your case will depend on individual facts and circumstances, as well as the expertise of your bankruptcy lawyer.
What to do Next?
The Bankruptcy Means Test was and continues to be a big source of confusion, but the bankruptcy lawyers at Credit Solutions help explain and simplify the process so that everyone can understand it. We’ll work with you before the test and after to make sure your road to debt relief remains roadblock-free.
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