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Understanding the means test in Chapter 7 Bankruptcy

On Behalf of | Jun 16, 2022 | Bankruptcy Law

There are a multitude of circumstances in which a person might face dire financial challenges and similar issues can take a significant toll on one’s life. Individuals in Maryland who encounter prolonged periods of monetary strain may wish to explore the possible benefits of seeking relief through outlets such as bankruptcy, but they might not know what to expect from the process. Those with concerns about whether they will be eligible to file for Chapter 7 Bankruptcy might benefit from seeking insight on the means test and the role it might play in determining eligibility. 

Factors to address 

The means test addresses various factors to help determine whether one will be eligible to pursue debt relief via Chapter 7 Bankruptcy. One of the first topics involved may pertain to one’s income, and those who earn less than the median income in their state may be eligible to file. It may also be vital to address factors such as household size prior to taking the means test, as this could also play a role in the outcome of the situation. 

Experts also state that taking care to report expenses in accordance with the necessary standards could prove integral when filling out the means test. Properly calculating household size and expenses may prove essential to providing accurate information on this test. Even if a person does not qualify to file for Chapter 7 bankruptcy, it may still be possible to seek relief from financial strain through outlets such as Chapter 13 bankruptcy. 

Preparing for the process 

While bankruptcy could be just the tool with which to pursue much needed relief from the trails of debt, it can also be a stressful and intimidating process. Individuals in Maryland who face dire financial straits but remain uncertain of their available options and the next steps to take could find it helpful to consult with an attorney for guidance in making informed decisions. An attorney can address the situation a client is facing, provide insight on all his or her available options, and assist in preparing a strategy with which to reduce or eliminate debts through the appropriate outlets.