California Means Test Top-Rated Attorneys in Los Angeles

Means Test Attorneys in Los Angeles

Determining Chapter 7 Bankruptcy Eligibility

Since the October 2005 bankruptcy law changes were passed, individuals wishing to file for Chapter 7 bankruptcy must pass the means test. This test is designed to determine if a person has enough disposable income to repay any of his or her debts. It is a complex formula that takes your income, expenses, and total amount of debt into consideration.

At Resnik Hayes Moradi LLP, our Los Angeles bankruptcy attorneys have a detailed understanding of the means test. We have helped thousands of people in Los Angeles and other Southern California communities obtain debt relief through Chapter 7 bankruptcy, allowing them to rebuild their financial future on more solid footing.

Call us at (213) 344-0043 to arrange a free consultation and learn if you pass the means test.

What Is the California Means Test?

The means test is an attempt to limit Chapter 7 bankruptcy to those who are truly unable to pay their unsecured debt. It was created to encourage those who are able to repay even a small portion of their debt to file Chapter 13 bankruptcy, the debt reorganization plan.

The first part of the means test compares your monthly gross income for the past six months to the median income in California. If your income is less than the average, you probably qualify for Chapter 7 bankruptcy. If it exceeds the median, deductions for housing, child care, medical expenses, and other costs are applied to determine a monthly net income figure.

Not being keenly aware of the means test could cost you hundreds of dollars each month. An experienced bankruptcy lawyer can help you navigate this test and save you money.

What is the Alternative?

If you make too much money to file Chapter 7 bankruptcy, all is not lost. You may file Chapter 13 instead. With Chapter 13 bankruptcy, your unsecured debt is rolled into one monthly payment, determined by your ability to pay, which you make over a period of three to five years. After the designated time is over, all remaining unsecured debt is discharged. One benefit of this type of bankruptcy is that you can remove junior liens, including second and third mortgages.

Experienced Bankruptcy Lawyers Helping You Get a Fresh Start

Calculating the California means test is complex. One simple mistake could result in the dismissal of your bankruptcy petition. Protect yourself by speaking with our bankruptcy lawyers in Los Angeles.

Contact us today to schedule a free consultation and discuss your eligibility for Chapter 7 bankruptcy.

Testimonials 

See What Our Clients Have to Say 
  • He not only saved my house but also got rid of all my debt. They are not your typical attorneys and their creativity really allowed me to do things that other attorneys never mentioned in previous consults.

    “Fantastic office! I want to thank Matt for taking his time with me and sincere in his assistance. He spent over an hour with me for free during our initial consult. I left knowing exactly what's ...”

    - David K.
  • He negotiated on my behalf with a credit card company and was able to settle with them for much lower than I could have on my own.

    “I worked with David Kritzer at this firm, and he was great. He negotiated on my behalf with a credit card company and was able to settle with them for much lower than I could have on my own thanks to ...”

    - Kelly S.
  • I cannot thank them enough for helping save my home. I would recommend them for anyone that is thinking about filing for bankruptcy or foreclosure on their home.

    “I needed a bankruptcy attorney in Sherman Oaks and found Matt Resnik on Google. He has one of the best-reviewed bankruptcy law firms on Yelp so I decided to check it out his law firm for myself. I ...”

    - Joseph R.
  • These are top-notch pros that'll have your back. I cannot recommend them highly enough.

    “Where to begin? I had a vile evil credit union repo my car over a misunderstanding, they wouldn't work with me even when I offered full payment plus repo fees (this was my first repo!) so I didn't ...”

    - Tim C.
  • They were thorough, extremely knowledgeable, wonderful to deal with, thoughtful, and really helped guide me through what was one of the toughest times in my life.

    “Matt and his team are the best!! They were thorough, extremely knowledgeable, wonderful to deal with, thoughtful, and really helped guide me through what was one of the toughest times in my life. I ...”

    - Rusty H.
/
We Make Debt Relief Easy

Committed to making the process as stress-free as possible for our clients, our Los Angeles bankruptcy attorneys and dedicated staff will handle everything for you. From filling out paperwork through getting end results, we will work to help your case run smoothly and efficiently. We serve our clients in English, Spanish, and Farsi.