But are you aware whether you are eligible to qualify for chapter 7 bankruptcy filing? If yes, then on what basis?
According to the law of bankruptcy the debtor needs to qualify the "Means Test" before filing chapter 7 bankruptcy. The means helps you to understand the net disposable income available to pay off the debt collectors. Therefore, it is crucial for the bankruptcy filer to acquire enough information regarding the eligibility requirement if he files under chapter 7 bankruptcy. If you are interested to file under chapter 7 bankruptcy then you should know that you should qualify the "Means Test".
Under chapter 7 bankruptcy your non exempt assets will be liquidated in order to pay off the creditors. According to the US Bankruptcy Code, the filer has to comply with the terms and conditions in order to qualify for chapter 7 bankruptcy. Here are the following terms that you need to keep in mind:
A legal residence is require in US You need to qualify the "Means Test" You need to hire an attorney if there are any legal issues involved in the matter. He can give you advice on other debt relief options in case you fail to qualify for the "Means Test".
How "Means Test" is an essential factor to qualify under chapter 7 bankruptcy?
The Means Test determines whether you are eligible to file bankruptcy. It makes it essential for the individual to fulfill the minimal criteria. Therefore, if you want to qualify for chapter 7 bankruptcy then you need to follow these below mentioned points: Your income should be less than or equal to the median household specified in your state. You have to check the Means Test specification of your state in case your monthly income goes beyond the average state income. With the help of the Means Test you can find extra source of income which you would have ignored. You can get the exact amount if you deduct your total monthly income, debt payments from your actual income. So, if the results of your Means Test prove that your net income exceeds the average state income then you can opt for chapter 13 bankruptcy.
Filing bankruptcy can be difficult therefore you should be aware of the problems involving in it. You should hire the services of a debt settlement attorney who can guide you through this process without getting into complications. The lawyer’s deft knowledge will help you to take prompt action if required. You can discharge your debt effortlessly with the help of a bankruptcy lawyer as you can go through the process without any obstruction. For more info, visit this link.