The Means Test
How does the Means Test Affect Filing for Bankruptcy in Kansas?
The "means test" determines whether you have low enough income to file for Bankruptcy under Chapter 7 to extinguish your debts. The test was designed to keep high wage earners from wiping out their debts when they could conceivably pay them. Even if you fail the means test, however, you may file for Chapter 13 where you pay for a share of your debts while at the same time receiving bankruptcy protection from creditor law suits. For help in figuring the means test, Kansas residents are urged to contact a bankruptcy attorney in Kansas.
How is the Means Test Figured?
Initially you check to see if your average monthly income exceeds the average median income of your state, in this case Kansas. If your income falls below the median income, you have passed the means test and may proceed to file your Chapter 7 Bankruptcy Petition.
If though your income exceeds the Kansas average median income, you need to do more calculations. You need to plug your monthly basic expenses into a formula to determine your disposable income to pay debts. It should be noted that you may not use your actual expenses. You have to use the standard amount for such an expense for your area. For example, if you actually spend $200 per week on food but the standard amount for food expenditure for your size of family is $160, you put $160 into the formula. Once you have entered the data into the formula, you know whether your disposable income is low enough for you to pass the means test. A bankruptcy attorney can assist you in this computation.
Experienced Kansas Bankruptcy Attorney Can Help You Figure the Means Test
We of the law office of Rick Hodge are a seasoned bankruptcy firm serving the entire state of Kansas. We would be pleased to help you work out the means test over the phone. We are fully prepared to explain to you your options as indicated by the means test and to assist you in taking advantage of them.
Contact the Bankruptcy Attorney in Kansas for help in figuring the