Calabasas bankruptcy attorney
Calabasas bankruptcy lawyer Firm Profile Success Stories Resources Office Information
Click here to connect
Calabasas Bankruptcy Information Center
Bankrupcty Overview
Bankruptcy Myths
Is Bankruptcy Right for Me?
Chapter 7
Chapter 13
Debt Relief
Foreclosure
Life After Bankruptcy
Areas We Serve
24

Amended Bankruptcy Laws and the Means Test

In 2005 the Bankruptcy Code was amended by Congress to ensure those who could pay a portion of their consumer debt would not be eligible to file Chapter 7 bankruptcy by instituting a means test. Under the amended law a debtor with an income lower than the median income for that state is qualified to file a Chapter 7 petition for bankruptcy.

If your total income over the last six months is higher than the median income, you may still qualify by completing the second part of the test. In this part of the test you subtract certain allowed monthly expenses from your income. If you have less than $100 a month after expenses, you qualify. If the amount remaining after expenses is less than $166.67 per month and this amount will not pay 25% or more of your unsecured debt, you qualify. If the amount remaining after expenses is greater than $166 then you will not qualify unless you have unusual circumstances. Even if you do not qualify to file under Chapter 7 you can file under Chapter 13.

We have been assisting clients throughout Woodland Hills, Simi Valley and Agoura Hills to obtain a fresh start for many years. If you want to know which form of bankruptcy will be best and which you actually qualify for, a free consultation with Attorney Joseph A. Mannis can answer all of your questions.

Categories: Bankruptcy

A value is required.Minimum number of characters not met.Exceeded maximum number of characters.

A value is required.Minimum number of characters not met.Exceeded maximum number of characters.

A value is required.Invalid format.

Exceeded maximum number of characters.

View Our Blog
4764 Park Granada, Suite 206, Calabasas, CA 91302
Bankruptcy Attorney