When most people think of the financial situations that may drive a person to file for bankruptcy, they likely imagine circumstances in which a person in unemployed or underemployed and has a relatively low income as a result. In reality, people who make “good” money can also find themselves in financial difficulty and may be able to benefit from filing for bankruptcy as well. While the bankruptcy reforms of 20051 tightened the regulations that control who can file for bankruptcy, you do not need to be penniless in order to qualify for relief under the bankruptcy code. The best way to determine whether you can file and could benefit from bankruptcy is to discuss your situation with an experienced Long Island bankruptcy lawyer as soon as possible.
The Chapter 7 Means Test
The statutory provision that determines whether a given person can file for Chapter 7 bankruptcy is known as the “means test.” The test is intended to limit bankruptcy filings to individuals who truly cannot pay their debts. Fundamentally, the means test balances your monthly income against your monthly income in order to determine whether you qualify. There are two steps in applying the Chapter 7 means test:
Contact a Long Island bankruptcy lawyer today to schedule a free consultation
Anyone who is experiencing financial difficulty should discuss their options with a bankruptcy attorney as soon as possible. To schedule a free consultation with Long Island bankruptcy attorney Ronald D. Weiss, call our office today at (631) 402-5967.