Chapter 7 bankruptcy is designed to give a fresh start to consumers who face overwhelming debt. Chapter 7 bankruptcy is not designed to allow consumers to elude their creditors. There have always been anti-fraud provisions in the Bankruptcy Code, but those provisions were upgraded in 2005.
The primary anti-fraud device is now the means test, which compares the debtor’s income to other consumers in the state. If the debtor’s income is higher than average, there is a presumption that the debtor has the “means” to repay unsecured debts (such as credit cards and medical bills).
Maybe you’ve heard that the means test makes it nearly impossible to file Chapter 7 bankruptcy. That is wrong.
Eligibility for Chapter 7
If your income is at or below the state average for your household size, you are eligible to file Chapter 7. No questions asked. Even if you have a higher income, there is only a presumption that you cannot file Chapter 7. The bankruptcy attorneys at Henley and Henley are familiar with this situation, and they can give you options for eliminating most or all of your unsecured debt.
Call Henley and Henley today for your free consultation.