Means Test

Arizona Bankruptcy Attorney

When filing bankruptcy, there are certain qualifications that must be met in order to proceed. A means test is a tool that is used to determine how much disposable income will be available, thus providing an idea of whether or not a person or business will have the ability to repay their debts. 

At Price Law Group, an experienced Arizona bankruptcy lawyer from our firm can help you file:

• Chapter 7 - liquidation of assets and clearing of debts for individuals and spouses
• Chapter 11 - debt repayment plan for businesses and corporations
• Chapter 13 - debt repayment plan for individuals and spouses

A Means Test Calculates Disposable Income and Helps Determine Bankruptcy Eligibility

A means test will be used to make a determination of your disposable income by deducting your monthly expenses for rent, utilities and payments for items that won't be included in the bankruptcy, from the amount of income that you bring in monthly. The difference would be considered your "disposable income". Your disposable income figure is then be multiplied by 60, which is the term of a typical repayment period if Chapter 13 bankruptcy is filed. If the total is less than $10,000, you will most likely qualify for Chapter 7. If it is over $10,000 though, you will be required to file Chapter 13 to repay your debts. Sometimes, if a judge rules that there are "extenuating circumstances", there may be allowances to file Chapter 7, regardless of the outcome of the means test calculation.

Whether you choose to file bankruptcy or go with one of the various bankruptcy alternatives like debt consolidation, debt negotiation or debt settlement, it is important to know that our knowledgeable bankruptcy attorneys are prepared to help you make informed decisions about your financial future and protect your rights through the process. If you or someone you know is overwhelmed by debt, and it seems hopeless to regain control, talk to one of our attorneys today to find out what your options are.

Contact an Arizona Bankruptcy Lawyer from our firm now, for assistance with debt solutions.