If you are considering filing for bankruptcy in the state of New York, it is important to understand the means test and how it works. The means test is a two-part test that is designed to determine whether a candidate for bankruptcy meets the income requirements for filing. This test applies mainly to Chapter 7 bankruptcy, in which most assets are liquidated and debts are discharged without any sort of repayment plan. Those who wish to file for Chapter 7 bankruptcy must have an income low enough to qualify . Consulting with a New York state bankruptcy lawyer is a smart thing to do if you’re considering filing for Chapter 7 bankruptcy and need to know if you meet the financial requirements.
When the Means Test is Required
In order to determine whether or not you may file for Chapter 7 bankruptcy, it must be determined whether your current monthly income is less than, or more than, the median income for the state. Your current monthly income is calculated based on your income for the six months prior to filing for bankruptcy. This income is your gross income and includes all sources of income, including pensions and child support. If your income is less than the state median income, then you need not complete the means test. If your income is higher than the state median, but you qualify for certain exemptions, then you may still not need to complete the test. For example, those in military service or who are disabled veterans may not need to complete the means test to file for Chapter 7 bankruptcy.
Call to Schedule a Free Consultation With a New York State Bankruptcy Lawyer Today
If you want to learn more about bankruptcy and the means test, call to schedule a free consultation with a Long Island bankruptcy lawyer today. At the Law Offices of Scott R. Schneider, we will use our experience and skill to help you determine whether or not filing for bankruptcy is the right move. We serve the cities of Long Island, Melville, Lindenhurst and surrounding Nassau and Suffolk County communities. Visit our website at https://nassaubankruptcyattorney.com or call us at (516) 433-1555. Let our expert legal staff help put you on a path to financial recovery.
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