Anyone can file for bankruptcy, right? Not necessarily. You have to be in a fairly precarious economic situation in order to do it, and the status of your financial situation will be used to determine for which type of bankruptcy you may qualify. If you are particularly interested in pursuing a Chapter 7 bankruptcy, take a means test to see if you meet the necessary qualifications.
Means test, what’s that? Good question. It is the first step anyone, whether they reside in Pennsylvania or elsewhere, must take when wanting to pursue a bankruptcy filing. How does it work and what does it mean?
Purpose of the 122 forms
Do you want to take a means test? To do so it is necessary to gain access to the bankruptcy 122 forms. A bankruptcy law attorney would be able to get them for you, or you can find them online.
The purpose of these forms, as previously stated, is to determine if you might qualify for a Chapter 7 bankruptcy. Taking the test is easier than you may think. All it requires is some information from your personal records and from the current census data. With a means test, what you are doing is comparing your current income to the state’s median income level.
Now that you took the means test, what’s next? After filling out the 122 forms, you may be confused at what you are looking at. These sheets of numbers can be difficult to understand. Reading the results really is not that hard, though, if you know for what you are looking.
In order to qualify for a Chapter 7 filing, your current income level must be below the states median income level. It is possible for your income level to be higher, but your disposable income will have to be quite minimal.
Seek financial freedom
Confused? It is okay and you aren’t alone. The truth of the matter is that many ins and outs to bankruptcy law exist that make it difficult to understand. Thankfully, it is something with which you can seek assistance.
If you want to free yourself from the mountain of debt you feel is crushing you, you may have options. By taking a means test, you will gain a better understanding about which bankruptcy options may be open to you. With the assistance of legal counsel, you will be able to decide it pursing bankruptcy is really in your best interests.