Bankruptcy Means Test

Understanding the bankruptcy means test in Georgia courts

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Should you file chapter 13 bankruptcy or chapter 7 bankruptcy?

Chapter 7 eligibility analysis by experienced Marietta lawyers

Chapter 7 bankruptcy has many advantages for some debtors. This filing status allows for a discharge of most debts instead of the reorganization and the adherence to a repayment plan that is typical under Chapter 13 bankruptcy. Gentry, Smith, Dettmering, Morgan, Schnatmeier & Collins, LLP conducts careful analysis of your individual financial situation to determine whether you would benefit from a Chapter 7 bankruptcy. If we conclude that you would benefit from petition under this section of the U.S. Bankruptcy Code, we apply our more than 80 years of combined experience to qualify you under this provision.

Understanding the bankruptcy means test in Georgia courts

The means test is a formula for determining a consumer’s eligibility to file an application under Chapter7 of the U.S. Bankruptcy Code. The law holds the Chapter 7 petition to be presumptively abusive if the debtor’s monthly income is more than the state median or if the debtor’s aggregate net monthly income over a five-year period is above the statutorily prescribed amount. The debtor can rebut the presumption by demonstrating to the trustee that extra expenses are justified. Our bankruptcy attorneys have substantial experience in calculating the complex deductions and exemptions allowed under Chapter 7 rules. We have often helped debtors who previously thought they were ineligible to meet the standards of the means test that the law imposes. Therefore, we recommend that you obtain a second opinion if a lawyer has previously advised you that you do not qualify for a Chapter 7 bankruptcy.

Difference between consumer and non-consumer debts

The means test regulations apply to consumer cases only. Non-consumers filing under Chapter 7 do not have to meet the test criteria. Because the code applies differently to consumers than to businesses, the bankruptcy court scrutinizes the types of debts as part of its eligibility decision. The court may dismiss a case if it finds that the debts are inaccurately represented. Our attorneys are meticulous about properly representing your debts so as to present accurate calculations to the court and fully protect your interests.

Learn more about the means test requirement for Chapter 7 bankruptcy from our Marietta, Georgia lawyers

Learn more about satisfying the means test eligibility requirement for a Chapter 7 bankruptcy. Call Gentry, Smith, Dettmering, Morgan, Schnatmeier & Collins, LLP at 770.771.5097 or contact us online.

 

Gentry, Smith, Dettmering, Morgan, Schnatmeier & Collins, LLP

278 North Marietta Pkwy NE
Marietta, GA 30060
Phone: (770) 771-5097

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