Before you want to file for bankruptcy, you\u00a0may be\u00a0required to take the means test. The means test can help you\u00a0conclude\u00a0the type of bankruptcy that you are eligible for \u2013 so\u00a0in case\u00a0that you pass this test, you can file for a Chapter 7 bankruptcy and if you do not clear this, you are still eligible to file Chapter 13 bankruptcy. The means test has\u00a0to be\u00a0calculated precisely\u00a0so as to\u00a0know which chapter to file the bankruptcy case against.<\/p>\n
Typically, there are two types of personal bankruptcies.<\/p>\n
Are you getting confused? Is the scenario of seeking the \u2018best attorney near me\u2019 a continuous search in your web browser? Then reach out to\u00a0Recovery Law Group, the\u00a0acclaimed\u00a0law firm who assure the\u00a0best\u00a0attorney Los Angeles<\/a> and\u00a0Dallas regions.<\/p>\n Before seeking\u00a0help\u00a0from our affirmed lawyers, you could have a valid question in mind. Should everyone take up the complete means test analysis? It is not mandatory to take up the means test analysis for Chapter 7 if you satisfy any of the below-mentioned\u00a0conditions<\/p>\n Of the above three reasons for exemption from the means test, most of them find themselves complying with the low household income according to the standards set down in their living state.<\/p>\n Understanding the Median Income based exemption<\/u><\/strong><\/p>\n Calculating the average household income is very simple. It\u00a0is arrived\u00a0by summing up\u00a0all of\u00a0the income that includes wages, rental income, unemployment benefits, business income and all retirement\/ pension benefits. This summing\u00a0is done\u00a0for the past 6 months and the\u00a0final\u00a0value\u00a0is divided\u00a0by six to get the average income. For comparing this average income to the state\u2019s median income, multiply the average income by 12. Depending on the state that you live income, compare the arrived value with the below figures<\/p>\n MEDIAN FAMILY INCOME BY FAMILY SIZE<\/strong><\/p>\n \u00a0 Family Size\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0California\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Nevada\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Texas<\/p>\n 1-person families\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$49,983\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$43,685\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$42,908<\/p>\n 2-person families\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$64,779\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$56,367\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$58,666<\/p>\n 3-person families\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$68,917\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$59,346\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$61,502<\/p>\n 4-person families\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$79,418\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$69,672\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0$71,973<\/p>\n For every\u00a0additional\u00a0person, you may add $8100 to the median income threshold. The figures shown here are liable to change and hence a\u00a0bankruptcy attorney, Los Angeles\u00a0or Dallas areas can\u00a0provide\u00a0the updated numbers. So if your household monthly income is lesser than the digits shared above for your household size, then you\u00a0are exempted\u00a0from the means test calculation \u2013 you can directly file for Chapter 7 bankruptcy.<\/p>\n Means Test Application Procedure<\/u><\/strong><\/p>\n Let\u2019s consider the case when the household income is greater compared to the state median income \u2013 then you need to complete the full means test calculation. The procedure involves deducting the allowed expenses from the average household income. These allowed expenses are not directly what you personally spend but needs\u00a0to be\u00a0adhering to the standards set by the Census Bureau and the IRS (the national and local standards).<\/p>\n The remaining amount after the expenses\u00a0are deducted\u00a0becomes your disposable income and if your total disposable income value for the upcoming 60 months is less than $7700, then you meet the expectations of the means test for Chapter 7. If the disposable income value of the next 60 months is greater than the allowed expenses, then there are series of other calculations to\u00a0determine\u00a0your eligibility for bankruptcy.<\/p>\n The right support<\/u><\/strong><\/p>\n Getting the apt skilled attorney to substantiate the Chapter 7 bankruptcy filing<\/a> isn\u2019t a cumbersome ordeal any more. Recovery Law Group possess the professionals in this space and help with debtors on all of their queries related to means test for Chapter 7 bankruptcy filing.<\/p>\n\n <\/p> \n
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