It is important to understand the bankruptcy means test when considering bankruptcy. The means test is a set of guidelines used to determine whether or not you qualify for Chapter 7 bankruptcy. The test looks at your income and expenses to see if you can afford to repay your debts. Our Los Angeles bankruptcy team explains California's means test, why it is needed for chapter 7 bankruptcy, who qualifies, and how Resnik Hayes Moradi LLP can help you through the bankruptcy process.
How does a "Means Test" Work"?
A means test consists of two parts; the first examines your household income. If you earn less than the California median income, you will automatically qualify for chapter 7. The second part of the test looks at your disposable income, which is the amount of money you have left after paying your necessary expenses. If you do not have enough disposable income to repay your debts, you will also qualify for chapter 7. The means test is designed to ensure that only those who truly cannot afford to repay their debts can file for Chapter 7.
Who Qualifies For The Means Test?
If your household income is below the median income for California, you will automatically qualify for Chapter 7. The second part of the test looks at your disposable income, which is the amount of money you have left after paying your necessary expenses. If you do not have enough disposable income to repay your debts, you will also qualify for chapter 7 bankruptcy. The means test is designed to ensure that only those who truly cannot afford to repay their debts can file for bankruptcy.
Resnik Hayes Moradi LLP Can Help
If you are considering bankruptcy, it is crucial to speak with an experienced bankruptcy attorney. The attorneys at Resnik Hayes Moradi LLP can help you understand the means test and determine if you qualify for chapter 7 bankruptcy. Our team will work with you to gather the necessary documentation and navigate the bankruptcy process. We understand how overwhelming and stressful this time can be, and we will work diligently to get you the fresh start you deserve.
Contact us today through our website or give us a call at (213) 344-0043 to schedule your risk-free consultation!