Chapter 7 Means Test

Chapter 7 Means Test | San Diego Lawyer

Median Income and the Bankruptcy Means Test | California Attorney

Have you been told that you cannot file for Chapter 7 bankruptcy because you do not meet the eligibility requirements, known as the Chapter 7 Means Test?

If you are struggling with a financial crisis, get a second opinion regarding the Chapter 7 means test and your ability to file Chapter 7 bankruptcy. Chapter 7 bankruptcy has numerous benefits over Chapter 13 bankruptcy. Most importantly, Chapter 7 usually results in elimination of a higher portion of debt than Chapter 13 bankruptcy. You should not give up on your attempt to file Chapter 7 bankruptcy before you consult an experienced bankruptcy lawyer about the Chapter 7 means test.

At the consumer bankruptcy Law Office of Daniel G. Shay in San Diego, every day we help people realize that they meet the eligibility requirements of the Chapter 7 means test. To learn more about the benefits of bankruptcy for people facing unmanageable debt, contact our San Diego bankruptcy office for a free consultation.

Call 619-222-SHAY(7249) for a Free Consultation About the Chapter 7 Means Test

In most cases, you’ll qualify for Chapter 7 bankruptcy if your net household income (adjusted for family size) is below the California statewide median. In 2015, the median household income in California was about $49,983 for a single person and about $64,779 for a two-person household. The Chapter 7 means test allows you to deduct the amount of payments on secured debts — typically, mortgage payments and car loans — from your gross income. To illustrate how the Chapter 7 means test works, a married couple without children can qualify for Chapter 7 if they together earn $91,000 but pay $2,200 each month for their mortgages and motor vehicles.

Thorough Financial Analysis for Chapter 7 Bankruptcy Eligibility

At Law Office of Daniel G. Shay, we thoroughly analyze clients’ income, assets and debts to find all allowable deductions from gross income, to help financially stressed individuals meet the Chapter 7 means test. Additional expenses that may qualify as deductions include:

  • Payments of federal, state and local taxes
  • Mandatory retirement contributions
  • Uniforms and union dues
  • Term life insurance payments
  • Court-ordered payments like alimony and child support
  • Educational expenses for retraining and employment purposes
  • Child care expenses

Receive Personalized Attention From a Knowledgeable Attorney

As a solo practitioner, San Diego bankruptcy lawyer Daniel G. Shay has the freedom and flexibility to meet each client’s unique needs. All clients of our law office work directly with a professional attorney throughout the bankruptcy process, not with a junior associate, paralegal, secretary or receptionist.

Schedule a free initial consultation today with attorney Daniel G. Shay to learn more about the Chapter 7 means test.

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