What Is The Bankruptcy Means Test?

Some people are afraid of filing for bankruptcy because of the way many of the laws have changed the processes for filing for bankruptcy, unfortunately they do not really know what they can expect from filing for bankruptcy anymore. What you should know about the affects of some of these new bankruptcy laws is that mostly it just will mean that the actual processes are more time consuming and can be much more difficult than before. As if it were not difficult enough already I know, but laws change and we have to abide by those laws. It can be frustrating when thinking about it but it really may not be as bad as you might have thought.



With the most recent of the new bankruptcy laws, most people are quite scared of this horrid means test. The new means test is only a way for them to determine which type of bankruptcy the debtor should be attempting to file for. The test requires you the debtor, to be matched up against the median state income of the state in which you will be filing for bankruptcy in. The debtors who are in fact go over this median state income would have a more difficult time in filing for a chapter 7 bankruptcy, which would put the debtor not having any other choice but to possibly have to file for chapter 13, which means that the debts have to be paid back in monthly installments as the courts see fit. Usually people will find that they are under the state median income and in this case this new law really does not affect them in any way at all.



If you are considering the possibilities of filing for bankruptcy, do not let these new laws change your mind just because you are afraid. What you should do is simple, speak with a bankruptcy attorney and he/she will be able to give you advice on the regulations and laws of your state and if you may be in any ways affected by any of these new laws when thinking of filing for bankruptcy. This law was not put into affect in order to prevent you from being able to file for bankruptcy like some people may think, it is just a little something they are trying to do to prevent bankruptcy abuse from happening.



Filing for bankruptcy is not your only option as most of you already know. Consider all of your other options before making any quick decisions on filing for bankruptcy. Some may choose to get assistance by going to a credit counselor for helpful advice on reorganizing their financial status. Others may just choose to consolidate all of their debts into one monthly payment. It does not matter how you choose to better your current financial standing, as long as you are taking the initiative in correcting these problems that are keeping you entirely too stressed out and causing you too much unnecessary mental anguish.