Bankruptcy Means Test
Illinois Bankruptcy & Debt Relief Lawyers
Chapter 7 bankruptcy is a great option for people who are underwater on
their mortgages and overwhelmed by debt, but it isn’t right for
everyone. In order to qualify for
Chapter 7 bankruptcy, the law requires that you meet certain requirements, including a series
of calculations commonly referred to as the "means test."
At Sulaiman Law Group, LTD., we handle Chapter 7 bankruptcy cases for people
throughout Chicago. We educate our clients about bankruptcy law and help
them make the right decision for your financial well-being. If you are
bankruptcy, we can help you understand the means test and how it applies to you.
Ready to learn more?
Contact Sulaiman Law Group, LTD. for an assessment of your case. We are ready to help you!
The Bankruptcy "Means Test" & Chapter 7 Bankruptcy
The United States Bankruptcy Code applies a means test to determine whether
you can file for Chapter 7 bankruptcy. If you do not qualify for Chapter
7 - generally because your income is too high - you may be able to pursue
Chapter 13 bankruptcy.
The means test takes into account your income, and compares it to regional
income and expenses standards, using a special formula. The formula takes
your aggregate current monthly income over five years and subtracts certain
statutorily allowed expenses.
If the remaining amount is more than $10,950 or 25 percent of your non-priority
unsecured debt, the court presumes that you do not qualify for Chapter
7. You may be able to rebut this presumption by bringing to the court's
attention circumstances that justify additional expenses or adjustments
of your current income.
“Do I really need an attorney to help me?”
Because filing for bankruptcy is complex and because only certain people
qualify, it is best to consult with a lawyer before you take action. The
court holds non-lawyers filing for bankruptcy to the same standard as
it holds lawyers, so it is expected that all paperwork will be submitted
correctly and in a timely manner.
Filing mistakes or missed court deadlines can lead the court to dismiss
your case. At Sulaiman Law Group, LTD, our experienced attorneys handle
all matters for you, so that you can rest assured your bankruptcy will
be handled effectively and efficiently.
We are dedicated to providing the most innovative legal strategies, comprehensive
advice and the committed representation necessary to secure the long-term
objectives and the peace of mind that our clients deserve.
Are you facing foreclosure or other debt problems in Chicago?
Contact us online or by telephone at (312) 313-1613 to speak with an experienced
Chicago bankruptcy attorney regarding the bankruptcy means test and your
legal options through bankruptcy.