Taking the Means Test in Westchester County
Who Is Required to Take the Means Test?
In order to file for
Chapter 7 of the U.S. Bankruptcy Code, a debtor must first pass the means test.
This is a test that is used to evaluate a debtor's income versus expenses
to determine whether he or she has the wherewithal to repay part or all
of his or her debt through a
Chapter 13 repayment plan.
Taking the means test is necessary if you are interested in filing a Chapter
7 bankruptcy petition. With a
Westchester County bankruptcy attorney to guide you through this process, you can be sure that your income and
expenses are properly represented. A lawyer can help you through the entire
bankruptcy process, from filing all the way through to the discharge of
Steps Involved with the Means Test
There are two main steps associated with taking the means test. The first
is a comparison of your income against the median income for your state.
If you make less than the median income for New York, you will pass the
means test and will not have to go on to the next step. If you make more
than the median income, you will need to move on to the second stage of
the means test.
The second stage consists of an evaluation of your income versus your necessary
expenses to determine your amount of disposable income. Depending on the
amount of money you make and the expenses you have, you may pass the means
test at this stage.
Consult a Westchester County Bankruptcy Lawyer
Would you like to learn more about taking the means test and qualifying
for a Chapter 7 bankruptcy in the
Westchester County area? A lawyer at our offices can answer your
questions about this and can actually assist you in taking the means test to ensure
your financial information is presented accurately.