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Chapter 7 Means Test

Westfield Chapter 7 Means Test Attorney 

If you are considering filing for bankruptcy, you may have questions about the Chapter 7 means test. Unfortunately, many people do not understand what this test is about and incorrectly assume that they are ineligible for a Chapter 7 bankruptcy.

It’s important to understand your rights before you file bankruptcy — and we can help. A Westfield Chapter 7 means test lawyer at the Law Office of Eric Kornblum has helped many Bay Staters end the stress of their overwhelming debt.

If you’re ready to welcome a debt-free life, schedule a conversation with our Massachusetts bankruptcy law firm

Should I Hire a Bankruptcy Attorney in Massachusetts?

You may not think it’s a good idea to spend money hiring an attorney with all the financial stress you are dealing with. However, filing for bankruptcy without professional legal advice can cause you to lose money in the long run. If your bankruptcy petition gets denied, then you’d have wasted precious time and resources for no payoff.

What’s more? The court can suspect you of committing fraud if you make a mistake. Reliable bankruptcy attorneys like Eric Kornblum will never let you make a mistake!

An experienced bankruptcy attorney can ensure that all your paperwork is properly filled and that every detail is correct. Many clients have attained financial freedom with the help of Eric Kornblum. 

Aside from the Chapter 7 means test, our legal services also include:

Don’t suffer from debt much longer. Pick up that phone and schedule a conversation with our trusted bankruptcy attorney.

What Is the Chapter 7 Means Test?

You can choose from two types of personal bankruptcy in the United States: Chapter 7 and Chapter 13. Chapter 13 bankruptcy involves paying your debts under a payment plan over time (and allows you to keep your home or car). Under Chapter 7 bankruptcy, most of your property is sold, and your debts are discharged. However, you are only eligible for Chapter 7 bankruptcy if you meet its means test.

Under the means test, if your current monthly income (CMI) and disposable income exceed certain limits, you cannot file for Chapter 7 bankruptcy. (However, you may still be eligible for a Chapter 13 payment plan.)

However, Chapter 7 means test calculation is very complicated. It frequently involves a detailed accounting of your income and expenses. Since your financial freedom is at stake, you should consider hiring a bankruptcy lawyer to help you with your means test calculations.

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Eric has been helping clients discharge their debts for over 20 years. If you need help with filing bankruptcy, negotiating debts, avoiding foreclosure, and keeping your properties, you’ve come to the right place. Talk to us. We’re ready to listen!

Does the Means Test Apply in My Bankruptcy Case?

The means test is not applied in all bankruptcy cases. First, if your household’s CMI is under Massachusetts’ median household income, the government will presume you are eligible for Chapter 7 bankruptcy. Your CMI is your household’s average monthly income for the past six months. You must include all sources of income from all members of your household. Massachusetts bases its median household income on census data and other information. 

Additionally, you may be exempt from the Chapter 7 means test if you are a disabled veteran who incurred most of your debt during active duty, while performing homeland defense activities, or if most of your debt is business-related.

How Do I Calculate Disposable Income?

You must calculate your disposable income if you are not exempt from the Chapter 7 means test. Your disposable income is your CMI after certain monthly expenses are subtracted. These expenses include:

  • Housing, 
  • Food, 
  • Clothing, 
  • Medical treatment, 
  • Transportation, 
  • Childcare, 
  • Home heating, and
  • Other expenses, depending on your circumstances (such as charitable expenses or some forms of life insurance).

If your disposable income exceeds certain thresholds, the government assumes you have enough disposable income to pay off some of your unsecured debt. In other words, if you have too much disposable income, you fail the means test and can only file for Chapter 13 bankruptcy.

However, do not assume that you will fail the means test because you have a high income. An experienced lawyer may find additional expense deductions and special circumstances to help you qualify.

Speak with a Bankruptcy Lawyer About the Chapter 7 Means Test

Due to its complexities, we do not encourage clients to apply the Chapter 7 means tests without the help of a lawyer. The Law Office of Eric Kornblum has helped clients discharge their debts for over 20 years. We work with our clients to rebuild their finances and live debt free. Contact us to end your stress today!

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Feel free to contact us with any questions or comments!

MA bankruptcy lawyer Eric Kornblum graduated from State University of New York, Binghamton in 1989 and received his law degree in 1992 at Western New England College, School of Law. Since opening his own practice, Eric has been dedicated to helping his clients resolve their financial problems both in and out of court.
As a MA bankruptcy lawyer with over 25 years of experience in bankruptcy law and intimate knowledge of the Massachusetts legal system, Eric provides clients with expert guidance through Chapter 7, and Chapter 13 bankruptcy proceedings. He believes in aggressive, diligent and compassionate representation.

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