The Chapter 7 ’Means’ Test in Pennsylvania Bankruptcy

Do you qualify for bankruptcy in Harrisburg, York, or Chambersburg?

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.

Do you wish to speak with our York & Harrisburg bankruptcy lawyers confidentially? We are here to listen. Call Dethlefs, Pykosh & Murphy Law now.

Dethlefs, Pykosh & Murphy Law is ready to help! Call today.

Our Harrisburg & York 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 Chapter 7 attorneys are happy to help you explore your options and make an informed decision.

Take the first step to a brighter future by scheduling a free case evaluation.