The latest Bankruptcy Law of 2005 has altered many of the bankruptcy laws allowing very important and noteworthy provisions for the new bankruptcy law of 2005, which is the addition of a ‘Means Test’ informs Minneapolis bankruptcy attorney. The ‘means test’ is necessary to find out whether a person is qualified for filing for a Chapter 7 bankruptcy as according to the new bankruptcy law that was introduced on October 17, 2005; all bankruptcy candidates who plan to file a Chapter 7 bankruptcy protection should fulfill some specific necessities that have been premeditated ‘means test’. Therefore, anyone who decides to file for bankruptcy Chapter 7 should undergo the means test and put forward to the Bankruptcy Court the outcome of the means test suggests Minneapolis bankruptcy lawyer.
The new bankruptcy law that was passed in 2005 was intended to put a stop to people having higher incomes from filing for Chapter 7 bankruptcy. The ‘means test’ is a formula premeditated to prevent filing for Chapter 7 bankruptcy by filers having higher incomes. It is a set of verification of your income with the intention of determining your eligibility for filing bankruptcy. In case your income does fall short of the average income in your state, you are entitled to file for Chapter 7 bankruptcy. However, if it is found that your income is above the average estimated for your specific state, you will not be permitted to file Chapter 7 bankruptcy except only under very exceptional state of affairs. The Minneapolis bankruptcy attorney can assist you in determining the exact chapter of bankruptcy best suited for your financial condition.
People who are thinking of filing for bankruptcy having income higher than the states average, the estimating becomes additionally difficult for the ‘means test’. The ‘means test’ is carried out to estimate all your disposable incomes, which consists of the total money you will have after all your expenses are paid. Minneapolis bankruptcy lawyer further explains supposing your disposable income comes out to be very high, the Bankruptcy Court can adjudge that you should disburse in any case a few of your debts, which determines that you need to file a Chapter 13 bankruptcy rather than a Chapter 7 bankruptcy.
Bankruptcy is an option where you get rid of your unsecured debt so you can achieve a fresh start. The most common type of bankruptcy is Chapter 7. In order to qualify for chapter 7 bankruptcy you first need to meet the income requirements. Minneapolis bankruptcy attorney website gives you more information.
This article is copyright protected.