Lawrenceville Credit Card Debt Attorney

The bankruptcy means test considers many factors to determine whether an individual can file for Chapter 7 bankruptcy. Since 2005, the means test has been used to screen out individuals who may be able to pay back a portion of their debts. Although most people who want to file Chapter 7 still can file, those who cannot may be eligible to file Chapter 13 bankruptcy.

To find out more about the means test, contact our law firm in Lawrenceville, Georgia. Attorney George R. Belche is a bankruptcy attorney with more than 15 years of legal experience.

What Is a Means Test?

New personal bankruptcy laws were passed in 2005 that made it more difficult to file for debt liquidation through Chapter 7 bankruptcy. New laws made it necessary for a debtor to take a means test to determine if he or she is eligible to file under Chapter 7. This test considers gross income over the six months before filing and other factors.

I Failed the Means Test. Can I Still File Bankruptcy?

Even if you failed the means test and were determined ineligible for Chapter 7 bankruptcy, you may still be eligible to file Chapter 13 bankruptcy. Unlike Chapter 7 bankruptcy, which liquidates debt, Chapter 13 bankruptcy reorganizes debt. Under this plan, debtors are set up on a payment plan to repay a portion or all debts.

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For more information about the bankruptcy means test, and whether Chapter 7 bankruptcy is your best option to discharge credit card debt and other kinds of debt, contact us.

"We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code."