In this article, you can discover…
- How the means test and income limits impact your Chapter 7 bankruptcy petition.
- What to do if you do not qualify for Chapter 7 bankruptcy.
- How an experienced attorney can help you navigate the means test.
How Does The Chapter 7 Bankruptcy Means Test Work In Michigan?
The means test is a metric used to determine if you qualify for Chapter 7 bankruptcy. It is a chart that lists the maximum household income a family in every state can have to qualify for Chapter 7 bankruptcy and receive a discharge of debt. This number increases depending on the number of people in your household.
For example, in Michigan, a household of one person (you) must make less than $62,161 annually to qualify for Chapter 7 bankruptcy.
How Can A Bankruptcy Attorney Help Me With The Means Test?
Many of my clients struggle with numbers and calculations, and the means test can be quite confusing. To help you, the first thing I will do is to ensure that I have copies of your paystubs and income information to determine what you are truly earning. I will work to factor in elements such as gross versus net income to help you see if you pass the means test.
I may advise you to reduce your income if at all possible, to get below the maximum income level allowed for your household size. If you still do not qualify, I can help you explore other legal options to reduce or pay off debt.
What Are My Options If I Do Not Pass The Chapter 7 Bankruptcy Means Test?
If you do not pass the means test, you may still have the option of filing for Chapter 13 bankruptcy. Chapter 13 will allow you to pay off your debts in more manageable amounts over time and can be a helpful yet more realistic option for many clients.
Still Have Questions? Ready To Get Started?
For more information on understanding the Michigan bankruptcy means test, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (231) 726-4357 today.
Attorney Vincent Carlson is a respected, experienced bankruptcy law attorney serving Michigan. For over 15 years, he has helped clients just like you understand the means test and navigate Chapter 7 bankruptcy with unrivaled care and skill.
Have questions, or in need of legal guidance? Reach out to Vincent E. Carlson & Associates, PLC for an initial consultation today.