When you decide to file for Bankruptcy, you should take a test known as the “means test” which is used to figure out whether your level of income is low enough to qualify you for Chapter 7 Bankruptcy.
The test is formulated to evaluate your need for bankruptcy and to keep people with higher incomes from filing for Chapter 7 Bankruptcy. The bankruptcy filers who have a higher income can use Chapter 13 Bankruptcy to lessen their debt, while Chapter 7 is designed for people who need to eliminate debt.
How Does It Work?
It is vital to remember that you do not necessarily need to be destitute to qualify for Chapter 7. The Means Test was designed to limit the number of people who use Chapter 7 Bankruptcy and reserve it for