What is a Chapter 13 Means Test?

Bankruptcy can be one of the lowest points in your life. However, it shouldn’t stop you from starting fresh. With the help of our team at Segaul Law Firm, you can file for bankruptcy and pave the way for a new beginning.

Chapter 13 helps you restructure your finances. This process mandates the debtor, you, to pay the Chapter 13 Trustee every month for 3 to 5 years. Once the Trustee receives the payment, they distribute it across your creditors if they have filed claims against you.

The chapter 13 means test assesses if you have the income to pay your debts, either partially or fully. This income is also referred to as disposable income. Your eligibility for chapter 13 bankruptcy is dependent on your disposable income.

Our experienced attorneys are present to help determine if chapter 13 bankruptcy is the right option for you. To be eligible for filing bankruptcy, you should meet the following requirements:

  • You should be residing or working in the US.
  • You should have a stable or fixed-income.
  • Your secured debts should not be more than $922,975 and your unsecured debts should be below $307,675.
  • You should not be engaged in stockbroking.

Once you have filed for bankruptcy successfully, your creditors receive a stay order from the court upon so they can’t seize your properties and other assets. You have to sit with the attorney and make a plan for discharging your debt within 30-60 months.

So, you can choose from different types of bankruptcy available. If you aren’t eligible for chapter 7 bankruptcy, worry not. Many people with high income don’t qualify for it. You can always file for Chapter 13 bankruptcy.

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