Chicago Bankruptcy Attorney and Failing the Means Test


Your Chicago bankruptcy attorney will explain to you that filing for a Chapter 7 bankruptcy today requires passing a means test. The means test will review your financial situation and how much income you have to determine if you can file for a Chapter 7 bankruptcy, if the test determines that you have too much income you may be required into a Chapter 13 bankruptcy instead.

Chicago Bankruptcy Attorney and Chapter 7

If you fail the means test there is a chance you may still qualify for a Chapter 7 bankruptcy; you will have to review your case with your Chicago bankruptcy attorney to see if you can work around the means test results. Timing is very important in a bankruptcy case. If you have some change in income or you expect a change in income you may want to delay filing and then take the means test again. You may also be able to find some exclusions based on how many people reside in your household, not necessarily how many are in your family.

Chicago Bankruptcy Lawyer and Chapter 13

If you do fail the means test and have to file a Chapter 13 bankruptcy you can expect to be responsible for some of your debt through a repayment plan. Failing the means test determines that you do have the means, or income, available to pay some of your debts. A Chapter 13 bankruptcy prioritizes your debts and your Chapter 13 plan details how your debts will be paid.

If you'd still rather file a Chapter 13 bankruptcy than a Chapter 7 you will need to speak to a Chicago bankruptcy lawyer who will review your case and help you select the appropriate bankruptcy chapter to file.