Means Test for Chapter 7 Bankruptcy

Alabama Bankruptcy Means Test

Huntsville Bankruptcy Attorney | Crumbley-Blackwell & Associates, P.C.

At Crumbley-Blackwell & Associates, P.C. 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.

What is a Means Test?

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 are single, live alone, and earn less than $39,768 per year - you automatically qualify under the means test to file for Chapter 7 bankruptcy protection.
  • If you have one other dependent living with you, with no income of their own, and you make less than $48,770 per year - you automatically qualify to file for Chapter 7 bankruptcy protection.

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. Get started today by calling (256) 539-4464 or completing an online case evaluation form. Office locations in Huntsville and Athens, Alabama.

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The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. While this firm maintains joint responsibility, most personal injury cases are referred to other attorneys for principle responsibility. Prior success is not an indication of future success. Every case is different and regardless of what friends, family or other individuals may say about a case, each case must be evaluated on its own facts and circumstances as they apply to the law. The likelihood of success in any given case depends on the facts, the jurisdiction, the venue, the witnesses, the parties and the testimony, among other factors. Furthermore, no representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. Bankruptcy Disclaimer: We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.