Tucson Bankruptcy Lawyer
Determines Chapter 7 Eligibility

The means test is a two-part test that is used to determine income eligibility for filing for Chapter 7 bankruptcy. If your household income for the past six months is less than the median family income for a household of your size in Arizona, then you can qualify for Chapter 7 bankruptcy. If you pass the median income test, you do not have to complete step two. You can go ahead and work with a Tucson bankruptcy attorney from the Law Offices of Matthew T. Foley, PLC to file for Chapter 7 bankruptcy.

When you work with our firm, we can do the calculations for you and make the means test as streamlined and stress free as possible for you. If your family income exceeds the family median income in your part of Arizona, then one of our bankruptcy lawyers can easily walk you through step two. Step two is a test that determines if you have enough extra income to pay a portion of your debts through Chapter 13 bankruptcy.

Calculating Disposable Income

For the second portion of the means test, an attorney from our firm will look at your allowable expenses, debt, and income to determine the amount of your disposable income. If your disposable income falls above a certain level, then you do not pass the means test and cannot file for a Chapter 7 bankruptcy. If you do not pass the means test, you will be able to file for Chapter 13 bankruptcy. The Chapter 13 debt payback option is for wage earners who wish to protect their secured assets such as their home and car. An affordable plan is proposed that allows a debtor to pay a portion of his or her debts back over a period of three to five years. This plan is monitored by the bankruptcy court until completion.

Avoiding Bankruptcy Pitfalls

Each bankruptcy filing is different and follows a specific set of steps as you progress from initial consultation and income means testing until the day your debts are discharged. Passing the means test requires a lot of paperwork and complex calculations. All documents must be prepared correctly and in a time frame specified by the court. You can avoid legal pitfalls by hiring a skilled Arizona bankruptcy attorney from the Law Offices of Matthew T. Foley, PLC. If you are ready to move forward with your case, do not hesitate to contact our team today to discuss your specific situation with a trusted bankruptcy lawyer. We have successfully filed more than 4,000 bankruptcy petitions and we may be able to help you as well. Consult our team today!