Eligibility for Chapter 7 Bankruptcy

Information Provided by Washington DC and Maryland Chapter 7 Lawyer

Due to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, changes have been made to bankruptcy law that makes it harder to file for Chapter 7 bankruptcy. Are you qualified to file for this type of bankruptcy? Our skilled Washington DC and Maryland Chapter 7 lawyer at the Law Firm of Kevin D. Judd can help determine your eligibility.

The changes that have been made due to this new law state that some debtors with higher incomes will be prohibited from filing Chapter 7 bankruptcy. To determine if you are eligible, you must first measure your monthly income with the median income of similar-sized households in your state. If it is higher than the median, you must then pass what is called “the means test.”

“The means test” examines your income and helps you decide if you would be able to afford a payment plan that is usually agreed upon with Chapter 13 bankruptcy. You must also subtract particular debt payments and allowances before coming to a conclusion. If, after that money has been subtracted, you are still not able to pay through a payment plan, you may file for Chapter 7 bankruptcy.

Qualified attorney Kevin D. Judd can answer any questions you have about your eligibility for Chapter 7 bankruptcy. If you are not eligible for Chapter 7 bankruptcy, do not worry. Contact a Washington DC and Maryland Chapter 7 attorney today.

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