Bellingham Lawyer for Chapter 7 Means Test

Federal and state bankruptcy laws allow individuals, families and businesses to discharge debt. If you are faced with an overwhelming number of financial obligations or are being harassed by creditors, it may be time to explore your bankruptcy options and understand your rights.

A Bellingham attorney for the Chapter 7 means test can help. My Washington state law firm is dedicated to assisting individuals who want to determine their eligibility for Chapter 7 or Chapter 13 bankruptcy.

Filing Bankruptcy in Whatcom County: The Means Test vs. Disposable Income Standard

In 2005, changes to bankruptcy law established the means test. This test is performed to determine whether or not an individual whose household income exceeds the median gross income for same-sized households is qualified to file for Chapter 7 bankruptcy. It involves an analysis of your current monthly income and will take into account expenses, secured debts and priority debts.

A majority of bankruptcy filers do not need to complete the means test. If your income falls below the established median, a disposable income standard will determine whether Chapter 7 or Chapter 13 bankruptcy is most appropriate. Disposable income is calculated by determining what is left of your monthly income after living expenses and other deductions. If this amount is minimal, it is likely that a Chapter 7 bankruptcy will be available to you. If it is determined you have sufficient funds to devote to unsecured creditors, you can file for Chapter 13.

The means test and disposable income standard can be confusing. Do not let them intimidate you. When times are tough, I, Steven Hathaway, am here to help. I will provide you with the information and support you need to get back on your feet and back on a prosperous financial track. To learn more, visit my bankruptcy FAQ page.

Contact an Experienced Bankruptcy Lawyer

Schedule a free consultation with the Law Offices of Steven C. Hathaway at 360-676-0529 and experience a life without debt.