Legal Advice During Challenging Times

Explaining The Bankruptcy Means Test

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was enacted in 2005 after eight years of lobbying by the banking industry. What the banks got in return was a more restrictive bankruptcy code that included the means test designed to discourage individuals from filing for bankruptcy.

The attorneys at The Law Offices of Franklin S. Montero in Clifton, New Jersey, can explain the means test and how it applies to Chapter 7 bankruptcies. Prior to the enactment of BAPCPA, anyone who wanted to eliminate his or her unsecured debt could file a Chapter 7 bankruptcy petition and have debts discharged without regard to their ability to pay them. Now under the means test, your income and expenses are taken into consideration to determine if you qualify for a complete discharge or whether you must repay some portion of those debts.

Our Attorneys Provide Unique Insight

If you want to file a Chapter 7 bankruptcy, you must pass the means test. If your income is higher than the median for your area, you will need to complete the means test calculation to determine if you can pay back a portion of your unsecured debts through a Chapter 13 bankruptcy.

If your debts are not primarily consumer debts, then you are exempt from the means test. You are also exempt from the means test if you are a disabled veteran and incurred your debt primarily during active duty or performing a homeland defense activity. Our skilled attorneys can explain the bankruptcy mean test and how it will apply to your unique situation.

Set Up A Consultation Now

The attorneys at The Law Offices of Franklin S. Montero in Clifton, New Jersey, have guided many clients through the bankruptcy process. We will answer your questions and provide invaluable insight related to the bankruptcy means test. If you want to learn more and set up a meeting, please fill out this online form or call 973-869-5556 . Se habla español.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.