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The Bankruptcy Means Test: The Key to Determining Your Filing Options

Attentive Virginia bankruptcy law attorneys prepare you for the means test

A revision to the federal bankruptcy code in 2005 requires those who file for bankruptcy to take a means test that determines whether they are eligible to file for Chapter 7.  The test compares your income to the median income in your state. If your income exceeds the median, you may be barred from filing for Chapter 7.  If you’re considering filing for Chapter 7 in Albemarle County and surrounding counties, our experienced attorneys with the Miller Law Group, P.C.’ can help prepare you for the means test and then guide you through the  bankruptcy filing process.

What does the Chapter 7 means test involve?

In a Chapter 7 means test for those who want to file for bankruptcy in Virginia, the court compares your income in the six-month period prior to filing to the average income of a comparable household in Virginia.  If your income is less than the median, or average, income for a comparable household, you are eligible to file for Chapter 7 bankruptcy.  However, if your income is greater than the average income in Virginia, you may be required to file for Chapter 13 bankruptcy. You must complete forms detailing your monthly income and expenses. Under federal bankruptcy law, there are certain expenses recognized as standard deductions:

  • Housing
  • Food
  • Transportation
  • Child care

Am I eligible for Chapter 7 bankruptcy if I exceed the median income?

In certain circumstances, even if you exceed the median income levels under the means test, you may still be able to file for Chapter 7 bankruptcy. If you are likely to be unable to pay at least $6,000 over the next five years to your existing creditors to fulfill your debts, you may be allowed to proceed with a Chapter 7 filing despite exceeding the Virginia median income for your household. The Miller Law Group, P.C. has extensive experience preparing clients in Albemarle County and surrounding counties for the complex Chapter 7 means test. With more than 30 years of combined experience, the attorneys with our Charlottesville law firm provide you with careful, compassionate advice throughout the debt relief process.

Contact us to prepare for a bankruptcy means test

Once you’ve made the important decision to file for bankruptcy, you must pass a means test and provide complex documentation.  Our attorneys with the Miller Law Group, P.C.  can prepare you for this test and then help you achieve a satisfactory resolution of your outstanding debts. We work hard to protect what’s important to our clients: their assets and their families. Call us locally at 434-218-3987 or contact us online today for your FREE APPOINTMENT. Our law firm is located behind the Senior Center in Charlottesville and is handicapped-accessible. Parking is available outside the door.

Serving the communities of central Virginia, including Albemarle, Augusta, Buckingham, Charlottesville, Culpeper, Fluvanna, Greene, Louisa, Madison, Orange, Harrisonburg, Staunton and Waynesboro