If you’re deep in debt, filing for Chapter 7 bankruptcy can be a solution – if you qualify. To qualify for Chapter 7, you must pass the Means Test, which evaluates your financial situation to determine if you can repay your debts.
Our bankruptcy attorneys at Daigle Law Office can help you prepare for the Means Test and can explain your options. Learn how our team can help you and what you need to know about the Means Test.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is a legal process that helps you eliminate most of your debts. Often called “liquidation bankruptcy,” it can involve selling off non-exempt assets to repay creditors; however, in most cases, you can keep your assets by marking them exempt. Typically, bankruptcy attorneys will help you mark essential items like your house, vehicle, and any items needed to perform your job or daily necessities.
There are numerous benefits to filing for Chapter 7. Some key benefits can include:
· Debt relief: Most unsecured debts, such as credit card debt, medical bills, and personal loans, can be discharged.
· Asset liquidation: Non-exempt assets may be sold to generate funds for creditors.
· Discharge: Upon completion, eligible debts are erased, providing a fresh financial start.
You must qualify to file for Chapter 7 bankruptcy. This includes taking a Means Test.
What is the Means Test?
The Means Test evaluates your income, expenses, and secured debt to determine whether you qualify for Chapter 7 bankruptcy. Because debts are discharged through Chapter 7, you must demonstrate that you don’t have the means to repay your debts, like with a Chapter 13 bankruptcy.
If your income is above the Massachusetts median, you may qualify for Chapter 7. However, you must provide detailed information about your financial situation to determine this. It’s essential to hire an experienced Chapter 7 bankruptcy attorney to help you through this process.
What If I Don’t Pass the Means Test?
If you do not qualify for a Chapter 7 bankruptcy, Daigle Law Office can help you determine if a Chapter 13 might be a better option. Daigle Law Office can also work with your creditors to create a repayment plan to submit to the bankruptcy court, under which you will be able to pay back the debt over time. Contact Daigle Law Office, and we will assist you in determining which bankruptcy would be best for you.
How a Bankruptcy Attorney Can Help with the Means Test
When taking a Means Test, hiring a bankruptcy attorney is essential. They can prepare you for the process and ensure you have the necessary information to complete the paperwork. A bankruptcy attorney can significantly assist with the means test by:
· Gathering essential financial information, including financial documents.
· Completing complex calculations to accurately determine your income and expenses.
· Maximizing allowable deductions to improve your chances of qualifying for Chapter 7.
· Disputing incorrect or inflated income or expense amounts.
· Representing you in court, if needed.
By hiring a qualified bankruptcy attorney, you can increase your chances of successfully navigating the means test and achieving the desired outcome for your bankruptcy case.
Hire Us for Help with the Means Test and Chapter 7 Bankruptcy
Contact Daigle Law Office today for a free and confidential consultation with Attorney Peter M. Daigle, a skilled and reputable bankruptcy and foreclosure defense attorney in Massachusetts. Call our Cape Cod office at 508-771-7444 or our Norwell office at 781-561-1220.
