Before you can file for a Chapter 7 bankruptcy, you have to determine your financial eligibility on the means test. The purpose of the means test is to determine if you have enough income to pay back even a small percentage of your debt.
There are several ways to determine your financial eligibility for chapter 7.
First, you must show that your gross household income is less than the median income for the state.
Second, if your income is above the median income, then you must prove that there is no way for you to afford to pay back even a small percentage of your income.
Third, if you are unable to prove that you cannot afford to pay back your debts, you may rebut the presumption by showing that there will be a change in circumstance, such as decreased earnings or increased expenses.
Finally, if you are unable to show any of the above you will be required to file a chapter 13 plan of reorganization.
If you live in the Framingham and Worcester, Massachusetts area and you think you need to file for Chapter 7 (or Chapter 13), contact the law office of Robert W. Kovacs. You won't find a more committed bankruptcy attorney who will do everything to make sure you have a new chance toward regaining your financial footing. Contact us for a consultation.