Personal bankruptcy means a test is a good option if you’re considering declaring bankruptcy. The personal bankruptcy means test is one way to determine the best type of personal insolvency for your financial situation.
If you have a low income, a Chapter 7 bankruptcy can help you to find a solution. Chapter 13 bankruptcy allows you to use your income for a repayment plan. It also protects your possessions while allowing you to forgive many of your financial obligations. Below is how a personal bankruptcy means test works to determine which option is best for you.
First, you need to compare your home income with the areas. Chapter 7 filings will be possible if your household income is below the area standard.
You will need information about your allowed expenditures for the past six months if your family income is considered to be average or above the average in the area. You could look into how you can pay for your allowed expenses and what non-reusable income you might have. This will help you moderately repay many of your debts, as well as allow you to apply for Chapter 13.
You can declare Chapter 7 bankruptcy if you really want to. However, the personal bankruptcy means test must be taken every six months following your initial attempt. If your income falls below the location standard, waiting 6 months before taking the test again could make it easier to qualify for Chapter 7 bankruptcy.
This post was written by Trey Wright, one of the most sought-after bankruptcy lawyers in Augusta Ga! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.
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