Glendale Bankruptcy Lawyer

What is the Means Test?

Making the decision to file for bankruptcy can be difficult. There are many factors to consider before going through with bankruptcy proceedings, such as have you explored any of the alternatives to bankruptcy? Have to attempted debt negotiation with any of your creditors? Do you think debt relief or debt settlement could be a more viable alternative? Then, if you do feel bankruptcy is your best option, which type of bankruptcy is right for you?

A knowledgeable Glendale bankruptcy attorney from The Law Offices of Khachik Akhkashian can help by reviewing your current financial situation, educating you on the pros and cons of filing for bankruptcy, advising you on the best course of action to take and assisting you through the entire bankruptcy process. Whether your situation requires a Chapter 7 or Chapter 11 bankruptcy, we are here to assist you.

In order to qualify for Chapter 7 bankruptcy, you will first need to pass a means test. The purpose of the means test is to prevent individuals with significant income sources, and the ability to repay creditors, from simply getting their debts discharged. It also allows individuals who do not have to means or ability to repay their debts, a way to clean their slate and start fresh.

The means test begins by comparing your monthly income to the average monthly income for a similar sized family in your state. As a general rule, in order to qualify for Chapter 7 bankruptcy, your income must be less than the median income of a similar sized household. Should that be the case, the next thing to determine is your disposable income (DMI). To do that we deduct specific monthly expenses from your current monthly income. Once your DMI is determined, we compare it to a list of pre-established income levels to see whether you qualify to file for Chapter 7 bankruptcy.

Bankruptcy Lawyer Serving Montrose and La Crescenta

While the means test may seem simple enough, there are variables which can make it quite complex. That is why we advise you to consult with one of the knowledgeable attorneys from our firm, who can assist you with the means test and your other bankruptcy needs. The areas we serve include Montrose and La Crescenta, California.

Attorney Akhkashian and the other attorneys at our firm have been practicing bankruptcy law for over a decade. We understand the intricate details which must go into filing for bankruptcy and we know what it will take in order to successfully guide you through the entire bankruptcy process. Our goal is to provide you with the best service and representation possible in order to get you quickly back on your path to success.

If you have questions regarding bankruptcy or wish to take a means test to determine if you qualify to file for Chapter 7 bankruptcy, contact a Glendale bankruptcy lawyer at our firm right away.