Bankruptcy Attorney
Bankruptcy Lawyer Attorney Profiles Common Questions Bankruptcy Evaluation Office Locations

No Money Down on Chapter 13 Cases
For Qualified Wage Earners!
Chapter 7 Bankruptcy from $850

Information Center
Asset Protection
Bankruptcy Overview
Business Bankruptcy
Chapter 13
Chapter 11
Chapter 7
Creditor Harassment & Abuse
Debt Relief Options
Eliminating 2nd Mortgages
Fighting Foreclosure
Means Test
Rebuild Credit
Resources
Taxes & Bankruptcy
Bankruptcy Alternatives
Bankruptcy Exemptions
Bankruptcy Myths
Bankruptcy Process
Bankruptcy Time Line
Benefits of Bankruptcy
Chapter 7 vs. Chapter 13
Filing for Bankruptcy
Is Bankruptcy Right for Me?
Life After Bankruptcy
Why Hire a Bankruptcy Attorney
Will I Lose Anything?
Read our blog

Understanding New Bankruptcy Bill Changes

Have you heard about the possible changes to existing bankruptcy law but aren't sure what they could mean for you? Here are the main points that you should be familiar with:

Under current law it is up to the court in which you file for bankruptcy to decide whether you qualify for Chapter 7 bankruptcy. If the new bill is enacted then your income will be subjected to a two-part means test. First it will be inserted into a formula that exempts specific expenses, like food and rent, to see if you can pay 25 percent of your "non-priority unsecured debt." Then your income will be compared to your state's median income.

If your income is above that of your state's median level and/or if you can pay 25 percent of your income then you automatically will not be allowed to file for Chapter 7 bankruptcy. However, if you pass the means test then you could qualify for Chapter 7 bankruptcy. However, it will not be an automatic decision, but will instead be up to the discretion of the judge who is overseeing your case.

As it is now the courts have great latitude in deciding what type of bankruptcy you are able to file for based on their own discretion.

If you'd like to discuss your options and rights before you file for bankruptcy, contact our firm to set up a time to meet with a Chicago bankruptcy attorney.

Free Bankruptcy Evaluation
Eliminate Debt & Bills
123 W. Madison Street, Suite 205; Chicago, IL 60602
Attorney Web Design
The information on this website is for general information purposes only. Nothing on should be taken as legal advice for any individual case or situation.

Main Office: 123 W. Madison Street, Suite 205 Chicago, IL 60602
Phone Number: (312) 427-3100