Jump to navigation Jump to content

A Brief Guide About the Chapter 7 Bankruptcy Means Tests


Blog Category:
12/15/2011
Tobias Licker, Esq.
Comments (0)

Many Missouri residents wonder what the Chapter 7 bankruptcy test are and how they are used to determine eligibility for Chapter 7 bankruptcy relief. It turns out that the means tests used to determine Chapter 7 bankruptcy eligibility are a series of number-based tests that use information about a debtor's income and expenses to determine eligibility for Chapter 7 bankruptcy relief.

Here is a quick overview of how these means tests are used to determine eligibility for Chapter 7 bankruptcy relief.

--The first test determines if a debtor earns less than the median Missouri household income for a given year.

This is an important calculation because debtors who earn less than Missouri's state's debt relief payday loanhousehold's average income are automatically eligible to file for Chapter 7 bankruptcy.

--If the debtor fails this first test, debtor's attorney must then determine the debtor's disposable income.

Bankruptcy courts determine debtor's disposable income because they use this information to determine if a debtor can afford to pay at least some of his debts. As a result, debtors who fail the first means test must provide information about how much they spend for different items such as childcare, charitable contributions and secured payments on car and house. Bankruptcy courts use this information to determine a debtor's disposable income by subtracting the sum of these expenditures from the debtor's monthly income.

If the remaining income is greater than what is allowed by the U.S. bankruptcy code for your household, you will not be allowed to file for Chapter 7 bankruptcy in most cases. Instead, you could be required to file for Chapter 13 bankruptcy reorganization that will require you to pay at least some of your debts back to your creditors.

The factors used to determine your household's income vary in Missouri because each city and county uses income guidelines that vary by population.

Therefore, if you need help understanding how the means tests are used to determine Chapter 7 bankruptcy process, please contact a St. Louis bankruptcy attorney or a St. Charles bankruptcy attorney for a free consultation.

Asking a St. Louis bankruptcy attorney or a St. Charles bankruptcy attorney for information about these means tests can help you determine if filing for Chapter 7 bankruptcy relief is worthwhile. This is the case because they can help you use the results of the means tests to help you develop the best way to handle your overwhelming debts.

To ask for your free consultation, please call us today for an appointment. We'd be happy to help you see how hiring a St. Louis bankruptcy attorney or a St. Charles bankruptcy attorney can help you use the U.S Bankruptcy Code's means tests to your advantage.



Category: Bankruptcy


1 Comments to "A Brief Guide About the Chapter 7 Bankruptcy Means Tests"

Yes, true, the means test is a complicated calculation, and only an experienced bankruptcy attorney will know what deductions you can use and which not. If you have an inexperienced attorney you might end up in a chapter 13 for 5 years paying thousands of dollars to your creditors you would have saved hiring an experienced law firm, like the Licker Law Firm. Thanks!
Posted by Tomdel on December 15, 2011 at 10:13 PM

Post a comment

Post a Comment to "A Brief Guide About the Chapter 7 Bankruptcy Means Tests"

To reply to this message, enter your reply in the box labeled "Message", hit "Post Message."

Name:*

Email:* (will not be published)

Message:*

Notify me of follow-up comments via email.

For Current Clients



Our Locations

St. Charles Office

1861 Sherman Drive
St Charles, MO 63303
Phone: 636-916-5400

At Hwy 94 and Hwy 70.

Get Directions | See Detail

St. Louis Office

3470 Hampton Ave, Suite 101
St. Louis, MO 63109
Phone: 314-353-0834

Close to the corner of Hampton Ave and Chippewa. By appointment only.

Get Directions | See Detail

South & Jefferson County office

7321 S. Lindbergh Ave., Suite 222
St. Louis, MO 63125
Phone: 636-916-5400

Across the South County Mall.

Get Directions | See Detail

Florissant Office (North County)

1281 Graham Rd, Suite 300
Florissant, MO 63031
Phone: 314-921-1880

At North Hanley and Hwy 270.

Get Directions | See Detail

Belleville Office (St. Clair county)

2 Park Place Professional Centre
Belleville, Illinois 62226
Phone: 618-977-9560

On Hwy 159, next to Schnucks.

Get Directions

Granite City Office (Madison County)

3600 Nameoki Rd, Suite 201
Granite City, IL 62040
Phone: 618-977-9560

Across Shop'n Save, by appointment only.

Get Directions | See Detail

Follow Us On