As with most court procedures, there are deadlines to meet, and failing to meet them can bring a negative result for you. Make sure you sign and submit all papers before the deadlines so you are not penalized.
If you decide to file for bankruptcy, you should ask an attorney about the Means Test, an artificial test for Chapter 7 cases that assesses your average income and expenses for the past six months. This can help you determine which bankruptcy chapter is best for you.
If you’re being bombarded by calls from creditors, it might be time to consider bankruptcy. Once the bankruptcy petition is filed with the courts, no creditor is permitted to contact you by phone, mail, email or other means.
What happens if my income is higher than the median state income? Am I limited to a Chapter 13 reorganization filing? Not necessarily, according to bankruptcy experts. There is an additional complicated analysis, called the “means test,” that makes it possible for some high-income filers to still qualify for a Chapter 7 filing. A bankruptcy attorney can help with this extremely complicated process.
Do I need an attorney to file for bankruptcy? That’s not a requirement; however, the bankruptcy process is fairly complicated and relying on an expert familiar with the forms and expectations and requirements of the bankruptcy trustee significantly increases your chances of a successful bankruptcy case.
The Bankrupts Act of 1825 saw England emerge as a world leader in regards to bankruptcy. Subsequent laws were enacted that governed debtor and creditor behavior. One law in particular declared that no commission grounded on the act of bankruptcy would be “deemed invalid by reason of such declaration having been concerted or agreed upon between the bankrupt and any creditor.”
It’s important to remember that filing for bankruptcy won’t completely help you to regain control of your finances unless you’re able to change the habits within your control that caused the situation. If you’re in need of additional financial education, we may be able to help you find it.
Changes in bankruptcy law means that everyone filing for personal protection must undergo credit counseling before filing. Those who have previously undergone bankruptcy must also go through additional budget and credit counseling before debt can be discharged.
What is the Means Test? If an individual wants to file for Chapter 7 bankruptcy, he or she must first pass the Means Test. The test is designed to determine if a debtor has sufficient disposable income to make monthly payments to creditors. The Means Test compares a debtor’s income to expenses based on the region of the country where the debtor lives.