Bankruptcy Planning: How Does The Means Test Work?

The seriousness of your financial problems may make you want to make a quick decision about bankruptcy filing, in order to get the process started as soon as possible to get creditors off your back and get the other immediate benefits of a bankruptcy filing.

However, the bankruptcy laws are written in such a way that advance bankruptcy planning may do you a world of good. When you consult with a certified bankruptcy lawyer at the law firm of Charles J. Schneider, P.C., you can be confident you are receiving bankruptcy planning advice that will help you make the most out of your decision to file bankruptcy.

We understand that money is a critical concern for everyone these days, and we offer free consultations at our office in Livonia, Michigan. The bankruptcy means test is only one of the issues we will examine as we help you determine when to file bankruptcy so that you get the most benefit out of our nation's debt relief laws. Contact us to schedule a consultation to discuss when to file bankruptcy.

The law firm of Charles J. Schneider, P.C., was founded in 1977. Our founder and lead attorney has been a certified bankruptcy attorney since 1995.

Questions To Ask Before Deciding When To File Bankruptcy

The following are only a few of the important questions that should be examined before you decide when to file bankruptcy.

  • To qualify for Chapter 7 bankruptcy, you must pass the Chapter 7 means test, which asks whether your last six months of income was above the median for your household in your state. What should you do if your last six months' worth of income does not reflect your current situation? Were you just laid off from your job, for example, or diagnosed with a critical illness? In such cases, it may make sense to delay filing for a couple of months, collecting unemployment, so that the bankruptcy means test calculation of your income reflects your current situation more accurately.
  • You can only file Chapter 7 bankruptcy every seven years. Are you about to have major surgery and accumulate significant medical bills? It may make sense to wait until after the surgery to file.
  • By law, the property exemption amounts go up every three years. If the three-year mark is approaching, you might consider waiting so that you can keep more of your property.

There are also good reasons to delay a Chapter 13 filing. For example, a delay may be beneficial if you want to strip a second mortgage from your home or establish a creditor preference to repay a specific debt (perhaps to a family member) before other creditors are repaid.

Get Thorough Advice And Analysis Before Filing Bankruptcy

We understand very well that your financial worries may be so grave that you want to file bankruptcy as soon as possible. However, it is important to get a comprehensive review of your financial situation from a bankruptcy attorney you can trust to examine your finances from every angle and give you practical advice about how to proceed.

Contact The Law Firm Of Charles J. Schneider, P.C.

We can answer your questions about when to file bankruptcy in a free initial consultation at our Livonia, Michigan, office. Contact us online or call 734-237-1523 to make an appointment.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.