When thinking about filing for bankruptcy in Aurora, Centennial, Highlands Ranch or anywhere else in Colorado, maybe some of you have wondered if Chapter 7 bankruptcy is right for you. And, maybe some of you have even done some research about this type of filing and how to qualify for it. If you are hoping for answers to questions about one way to qualify with the Chapter 7 means test, you’ve come to the right place. Let’s read on.
[pullquote align=”center” textalign=”center” width=”100%”]Wondering if you qualify for the Chapter 7 means test? Contact experienced bankruptcy attorney Barry Arrington today![/pullquote]
What is the Chapter 7 Means Test?
The means test determines whether your income qualifies you to file for Chapter 7 bankruptcy in Lone Tree, Parker and across Colorado. There are a few ways you can meet the means test. One way you are eligible for the means test is if you have a median income less than the Colorado median income. So, let’s say you have a family of four in your household. The Colorado median income today for a family of four is $83, 330.00, so if your income is below that amount, you may qualify for filing Chapter 7. Your average household income is calculated by averaging your monthly income over the last six calendar months, and multiplying by 12. You may also still be able to meet the means test if your disposable income is less than a certain amount. Disposable income is what’s left over after paying allowed monthly expenses. Determining if you qualify for the means test can be complex, which is why a knowledgeable bankruptcy lawyer is essential.
Who is Exempt from the Means Test in Colorado?
1. Adam lives in Aurora, Colorado, but used to live overseas on active duty. When he was overseas, Adam was brutally injured as a result of his active duty, so he was discharged from his line of duty. As a result, he would be seen as a disabled veteran under bankruptcy law because he was discharged as a result of injury. So, he may not have to take the means test at all. Another way a veteran could be exempt from the means test is if he or she is considered at least 30% disabled by the Veterans Administration. However, not all veterans are exempt. Any veterans’ benefits will still count as income.
2. Bill graduated from an expensive school not too long ago and has held a job for over a year now. However, he has been having a hard time keeping his head above water with student loan and tax debt. Fortunately, because these debts are considered non-consumer debts which Bill didn’t bring onto himself, he is exempt from the means test. If someone has primarily consumer debt, he or she may not be exempt from the means test.
Benefits of Chapter 7 after Filing for the Means Test
If you qualify for the means test and are able to file for Chapter 7 bankruptcy with an experienced bankruptcy attorney, you are on a good path to recovery. Chapter 7 filing is a helpful option that stops you from having to pay creditors. It is illegal for creditors to try to collect money from you if they know you are filing for bankruptcy. Most wage garnishments are also no longer a problem, and you will not have to worry about a home foreclosure unless creditors get relief from an automatic stay. Once you pass the means test, you can also go through the process of filing Chapter 7 in four to six months. Many people end up passing the means test and go through with bankruptcy filing just fine.
Why You Need the Best Centennial Bankruptcy Attorney
There are many aspects to the means test that are complex and often miscommunicated. This can be frustrating for those experiencing financial hardship. If you are considering bankruptcy, consult an experienced bankruptcy attorney who can help you understand if you qualify for Chapter 7 filing. Chapter 7 bankruptcy can often give people the fresh start they are looking for.
If you are considering filing for Chapter 7 bankruptcy in Littleton, Centennial or Aurora, it is important that you work with an experienced bankruptcy attorney. Call now to request your free initial consultation with Barry Arrington, a trustworthy and understanding bankruptcy lawyer at 303-205-7870 or submit the “Get Help Now” form to begin your journey towards financial freedom.