Taking the Bankruptcy Means Test

Qualifying for Bankruptcy in Maryland

When a person is struggling with debt, they have many different options in front of them to combat this unwanted accumulation. Some of the most common solutions that consumers choose to tackle their debts include Chapter 7 and Chapter 13 bankruptcy.

While these debt relief processes have become easier to qualify for over the years, a debtor must pass a test in order to become eligible for one of the two processes. This test, which is referred to as the means test, is something that should be executed with the help of a Silver Spring bankruptcy lawyer.

The Steps of the Means Test

The means test will begin by comparing the debtor's annual income to that of the median of the state. Simply put, if the debtor falls below the median line, they are considered to be eligible to file for Chapter 7 under the United States Bankruptcy Code.

Once this has been determined, and all assets, debts, and liabilities have been identified, your attorney can assist you in filing for bankruptcy. If the debtor fails to meet these qualifications, however, he or she may still be eligible for Chapter 13 bankruptcy.

How a Bankruptcy Attorney Can Help You in Silver Spring, Frederick, & Hagerstown

When it comes to filing for bankruptcy, nothing is more important than having an attorney on your side. Taking the means test may appear to be simple, but a small miscommunication or error on the test can have catastrophic consequences. A person who makes an error on the test and files the wrong chapter under the Bankruptcy Code may find great financial and possible criminal consequences.

Filing for a chapter of bankruptcy in which you are not eligible due to a mistake on the means test could potentially be considered bankruptcy fraud. All of these mistakes, however, can be avoided when a bankruptcy lawyer's help is retained.

At my law firm, The Law Office of David Cahn, I work with families, individuals, and business owners in the area of bankruptcy, foreclosure defense, and debt relief law. I know the devastating consequences that an error during the bankruptcy process can hold on a debtor and strongly advise you to retain my legal experience as a result. If you need help filing for bankruptcy, turn to my firm.