The 'Means' Test in Pennsylvania Bankruptcy
Chapter 7 is known as the "fresh start" bankruptcy, where nearly all your debts – such as credit cards, medical debt, lawsuits/judgments and mortgage foreclosure deficiencies – are discharged so you can start over with a clean slate. Because of the attractive nature of the "fresh start," Chapter 7 bankruptcies became wildly popular.
In 2005, Congress changed bankruptcy law to add a prerequisite test you must take before filing for Chapter 7 bankruptcy. This condition, known as the "means test," exists so that the federal government knows that you have a true financial need to file for a "fresh start" bankruptcy.
Although most people who consider filing for bankruptcy pass the means test, it is still important to accurately fill out the qualifying test because it helps decide your eligibility to file under Chapter 7.
There are some additional conditions of Chapter 7 eligibility beyond the means test; they address your history of prior bankruptcies and examine some other factors — such as whether you own your home outright.
At Boyle, Autry & Murphy, we help our clients with all stages of Chapter 7 or 13, including the means test. If you need help with any stage of bankruptcy, contact us and one of our experienced Carlisle personal bankruptcy attorneys can assist you.
York Qualify For Bankruptcy Lawyer
Our Harrisburg bankruptcy law firm is experienced at helping people determine whether they qualify for Chapter 7 bankruptcy. Even if you don't meet the requirements of the means test for Chapter 7, Chapter 13 bankruptcy may still afford you a lot of relief. Our Harrisburg Chapter 7 attorneys are happy to help you explore your options and make an informed decision.
If you are interested in speaking with an experienced Harrisburg Chapter 7 bankruptcy lawyer, contact us online or by telephone at 717-303-3756 to schedule a free initial consultation. To provide added convenience, we hold offices in both Cumberland County and York.
