Means Test

Alabama Bankruptcy Means Test

Huntsville Bankruptcy Attorney | Crumbley-Blackwell-Price Attorneys

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.

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.

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CONTACTS
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ADDRESS
  • 2304 Memorial Pkwy SW, Huntsville, AL 35801
  • 217 Randolph Ave SE, Huntsville, AL 35801
  • 112 Market Street W., Athens, AL 35611
  • 427 2nd Avenue SW, Suite 102, Cullman, AL 35055
  • 3172 Cahaba Heights Rd, Birmingham, AL 35243

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    Crumbley-Blackwell-Price Attorneys

    Athens office

    Address: 112 Market Street W., Athens, AL 35611
    Phone (English): (256) 539-4464
    Google map: https://goo.gl/maps/zbu296X2SNZUi6Tr6

    Huntsville

    Address: 217 Randolph Ave SE, Huntsville, AL 35801
    Phone (English): (256) 539-4464
    Google map: https://goo.gl/maps/Li7ndJFe9u7amwQx7

    Huntsville

    Address: 2304 Memorial Pkwy SW, Huntsville, AL 35801
    Phone (English): (256) 539-4464
    Google map: https://goo.gl/maps/JrumnQm5GT4rj4j97

    Cullman

    Address: 427 2nd Avenue SW, Suite 102, Cullman, AL 35055
    Phone (English): (256) 539-4464
    Google map: https://goo.gl/maps/NLDEo3KUFMoLawMA8