QUALIFY FOR CHAPTER 7 GETS EASIER - MEANS TEST REVISED 3/15/2009
Posted by Sidney Diamond on Tue, Mar 17, 2009 @ 08:11 AM
The "Means Test" is part of the bankruptcy code which determines if you qualify for a Chapter 7 or a Chapter 13 Bankruptcy. A Chapter 13 Bankruptcy also determines your disposable income. Disposable Income is the amount of money you have to pay out of your monthly income to the Chapter 13 Trustee which in turn gets distributed to your unsecured creditors.
On Sunday all of the numbers in the Means Test will be revised upward. Because the average median income will rise, it will be easier to qualify for a Chapter 7 bankruptcy (which is the first part of the Means Test). If you do not qualify for Chapter 7 because of your average median income you may still qualify for Chapter 7, depending on the result of the second part of this Test. These figures will also increase on Sunday. Visit our resources page for links to these revised tables.