The Means Test
After the United States amended the Bankruptcy Code in 2005, individuals seeking to file for Chapter 7 bankruptcy were required to meet new qualifications before they could begin the bankruptcy process and start working to achieve debt relief. Along with being required to attend credit counseling courses, those filing for Chapter 7 bankruptcy must also pass the means test to determine whether or not they are eligible to receive financial support through bankruptcy.
When you are struggling to make payments on your credit cards or other bills, the stress can affect every part of your life. If you are currently in a significant amount of debt, bankruptcy may be the answer. To learn more about how the means test affects you, contact a Raleigh Chapter 7 bankruptcy lawyer of the Bradford Law Offices, PLLC, today at (919) 758-8879 and schedule a free consultation.
Understanding the Means Test
The Chapter 7 bankruptcy means test was created to ensure that only those who are in severe financial debt qualify for bankruptcy. The means test considers the following information in determining eligibility:
- The median income of the state compared to the applicant’s income
- Whether not the applicant makes more or less than the median income
- Any disposable income the applicant may have
- Applicant’s monthly expenses
In North Carolina, the median income per month for one person is $3,157 ($37,892 a year) and $5,419 for a family of four ($65,036).