Bankruptcy Attorney

Understanding the Means Test

In the state of Illinois, if you are currently considering filing for a Chapter 7 bankruptcy, you will have to go through what is known as a "means test." This will allow you to understand whether or not you are eligible for this chapter filing. This test will ensure that only those who are truly in a situation who cannot pay their debt are allowed to file for what is also referred to as "liquidation," and the rest are turned away to look into filing for Chapter 13. It will take into account the income, and compare it to the median income of the rest of the families within the state.

If you are above this median income, you must prove with the help of a bankruptcy lawyer that you truly do not have enough disposable income to cover your debts. Disposable income is defined as what is left over each month after you have paid your regular expenses, such as mortgage and car payments. This disposable income is then multipleid by 60 to get a general idea of how much you could pay over a five year period. If it is determined that you truly cannot make your payments, you will be eligible. Also, according to new state and federal laws, to file for bankruptcy you must attain credit counseling and file overdue tax returns.

Knowledgeable Bankruptcy Lawyer

At Bizar & Doyle, our legal team understands the confusion surrounding the bankruptcy process. There are many different steps that must be completed to ensure that you are navigated through towards your optimum outcome. For this reason, we are devoted to ensuring that our clients receive nothing less than our absolute best effort as we help them through towards their desired result.

Do you have any questions regarding the bankruptcy means test? Contact a Bankruptcy Lawyer at our firm to get the answers you deserve.