Bankruptcy laws underwent significant changes in 2005. A means test was instituted to stop abuse of the Chapter 7 bankruptcy process by determining the income and expenses of people seeking Chapter 7 protection. But do not let assumptions that you will not qualify for a Chapter 7 bankruptcy deter you; we find that most of our clients seeking debt relief still qualify.
Helping You Through the Means Test Process
At Krigel & Krigel, we will walk you through the entire process of completing the means test and determining whether you will be able to file a Chapter 7 bankruptcy. We review all sources of income for six months prior to the filing, secured mortgages and car loans, and allowable expenses. Those include insurance, medical bills, child care, taxes, and other expenses.
Even if the means test initially concludes that you do not qualify for a Chapter 7 bankruptcy, there may be additional circumstances that will qualify you for a Chapter 7 filing. You may have recently lost your job or suffered medical problems that forced you into retirement. We will make sure that all available options are explored and pursue the right one for you.
The Next Chapter: 13
All is not lost if you do not qualify for Chapter 7 bankruptcy. Chapter 13 remains a viable option. You can still receive a discharge, and the reorganization and subsequent payment plan still provides you a chance at a fresh start.