In our continuing effort to help clients of the Brad Weil law firm understand all the legal jargon they will hear during bankruptcy proceeds, we come to the term “means test.”
In order to be eligible to file for Chapter 7 bankruptcy, you must pass the “means test.” A person or family who makes too much money does not qualify for a Chapter 7 bankruptcy and must file a Chapter 13 if they wish to be relieved of debt. A debtor must enter income and expense information onto the appropriate form and then make calculations using the information entered. Some of the information needed to complete these forms, such as a debtor’s current monthly income, comes from the debtor’s own personal records. However, other information needed to complete the forms comes from the Census Bureau and the Internal Revenue Service.
For Example a California family of four currently must make less than $74,806.00 annually to qualify for Chapter 7 bankruptcy protection. The family that makes more than $6,234.00 monthly they should file for Chapter 13 protection.
These numbers change frequently, so they may be slightly higher or lower depending on the latest changes to the law.If you’re considering filing bankruptcy, or if you’re a homeowner facing foreclosure and want to stop the process and save your home, contact the Law Offices of Brad Weil at frontdesk@bradweillaw.com or 310-515-7776 to set up your appointment today. Attorney Weil can help you navigate the complex legal process and work out a solution that best fits your needs.
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