At Crumbley-Blackwell-Price Attorneys we have been assisting clients who wish to file bankruptcy and restructure their financial situations. We have decades of experience handling cases in Huntsville, Decatur, Athens, Madison, and surrounding areas. If you’re considering bankruptcy – whether chapter 7 or other – contact a bankruptcy lawyer from our team to schedule a phone or office consultation.
The bankruptcy means test is a formula designed to determine who is eligible for filing Chapter 7 bankruptcy in Alabama. Primarily, it is a way for the local courts to keep individuals with high incomes from filing for Chapter 7 bankruptcy protection. At the same time, it could allow for individuals with some income that have high expenses (such as a high mortgage payment) to qualify for Chapter 7, which will discharge payments of specific debts that the individual has incurred. The means test deducts monthly expenses from your current monthly income and calculates your monthly disposable income.
Each state has a different dollar amount as a threshold for qualifying under the means test. In the State of Alabama:
If you qualify for Chapter 7 bankruptcy protection, and your debts are primarily consumer related, you could have the majority of your debts wiped out, essentially. Meaning that creditors will not be able to collect the portion that you owe. If you have questions regarding bankruptcy or the means test – contact a bankruptcy attorney from our team to schedule a consultation.
Still have questions? Schedule a consultation with a lawyer from our team today by calling or completing an online form
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