When overwhelming debt leads you to the point of considering bankruptcy, it is easy to become confused by the processes, terms and steps with a personal bankruptcy filing. That is the reason it is always advisable to hire an experienced Plymouth Bankruptcy Attorney to help you understand your options and handle the process of personal bankruptcy.

If you are experiencing a financial hardship, can’t pay your bills or worried about losing your home please call the knowledgeable Plymouth MA bankruptcy lawyers at the Law offices of Brian R Lewis at 508-946-3323, we can help.

What is the Chapter 7 bankruptcy means test?

The “means test” was introduced as a qualification measure for personal Chapter 7 bankruptcy in order to prevent filers from abusing the complete discharge of debts that it offers. A concern was growing that people with the means to pay debts were using chapter 7 bankruptcy to avoid their responsibility by seeking bankruptcy protection. Bankruptcy was designed to help a debtor truly unable to pay their debt.

Everyone filing for chapter 7 bankruptcy in Massachusetts or any other state must pass a means test. The test will let you know if you qualify for bankruptcy in Massachusetts and follow these guidelines:

Compare your average monthly income for the six months prior to your filing to the state’s median income.

If it is lower, then you are able to file.

If it is higher, then attention must turn to your “disposable income”, or the amount left over after permitted expenses are deducted from your income.

If the amount that remains is sufficient to make a reasonable payment toward your debts, then you may not be allowed to file, unless your debt load is significant.

If the amount that remains does not meet the established threshold, then you will be permitted to file.

These are just the general guidelines, if you do not qualify for chapter 7 bankruptcy there are other options, such as chapter 13 bankruptcy. Call our team of experienced Plymouth Bankruptcy attorneys to discuss if you qualify for personal bankruptcy at the Law offices of Brian R Lewis at 508-946-3323.