New York Means Test Attorney

Taking the Means Test

In order to determine if you qualify for Chapter 7 bankruptcy you must first calculate what your average income has been over the last six months.  This is called you current monthly income or CMI.  If your CMI is equal to or less than the median income for a family in your state, you will qualify for Chapter 7.  If it is more, you will need to do additional calculations including your monthly debts and expenses using the "means test".  For help in understanding and applying the steps of the means test you should speak to a New York bankruptcy lawyer at Price Law Group.  We can answer your questions and help you fill out the necessary paperwork to do the calculations.

The purpose of the means test is to determine if you have enough disposable income after paying your expenses and bills to pay off your unpaid bills and loans over time.  If you do, you will not qualify for Chapter 7 (called a liquidation bankruptcy because it discharges all your debt).  You will most likely be able to file for Chapter 13 bankruptcy which is an extended repayment of your debt over a period of 3 to 5 years with no interest.  When you come in for your free consultation, your attorney can explain the different types of bankruptcy and discuss your options.

Means Test Lawyer in New York

Chapter 7 bankruptcy is designed to help a person who does not have enough income or a regular income sufficient to pay off their debt.  If you qualify, your assets will be protected and your debts discharged (cancelled) and you will be able to start newly with no outstanding debt.  If you have a regular income and especially if you have valuable assets such as equity in your home or other real estate, Chapter 13 bankruptcy will schedule your repayments to fit your budget and protect you from any further collection calls.  We have helped over 100,000 people with serious financial problems successfully resolve them through bankruptcy.  The means test is used to correctly establish which type of bankruptcy protection is best for you.

Contact a New York Means Test Attorney for more information and help using the means test to determine what type of bankruptcy protection you qualify for.