Ensure whether you are eligible
Chapter 7 means test is meant to ensure folks burden with debts dont file for the wrong type of bankruptcy protection. For many folks who are able to retain the ownership of the valuable assets like vehicle or home, its very important. The chapter 7 means test thus intend to promote Chapter 13 bankruptcy as an substitute to a liquidation.
Chapter 7 bankruptcy law will also evaluate an individual ability for repaying his debts. This means test will measure an applicant income against the state or regional median income levels. When the real income exceeds the median level than the means test is to be met in some other way.
On understanding the exemption of the chapter 7 means test, many folks get afraid that they wont be able to meet their standards, if the income exceeds the median income or even if the expenses outweighs the maximum exemptions which are permitted by the IRS. Keeping this in mind the applicants are given many ways to meet the Chapter 7 means test.
Dont get afraid with Chapter 7 means test
The main intention of the Chapter 7 means test ensures that the applicants are filing for bankruptcy. Means test is to protect individuals and usually their rights to attain specific assets in bankruptcy. Means test also helps to get quick chapter 7 bankruptcy discharge.
Individuals are cheered to familiarize themselves with many forms which comprise of the Chapter 7 means test.