THE MEANS TEST

Evan Bornmann, Tucson Bankruptcy Lawyer: “The means test is one of the qualifiers for a Glendale chapter 7 bankruptcy, similar to a disposable monthly income calculation on chapter 15. And what we do is we take their last six months of income and we use that to get a monthly average, and then multiply that times 12 to get you an annualized income. When you look at your annualized income you compare it to what’s called the chapter 7 means, the median income for your household size. If your total annualized income that we calculate is below the median income, then you quality for a Tucson Arizona chapter 7 bankruptcy based on the means test. If it’s over the median income, we have to do a full means test where we deduct the allowed expenses from your total income to see if you still qualify.”

If you have any questions about Chapter 7 Bankruptcy,

CONTACT US

for a free consultation to best help you with your particular financial situation.