If I Cannot Pass the Means Test, Can I Still File for Bankruptcy?

One of the most common misconceptions people have about bankruptcy is that they will be unable to file for bankruptcy if they cannot pass the means test. That is simply not true. Bankruptcy is available to almost any individual who wants to clean their financial slate so that they can move on with their life unencumbered by past due debt. A divorce, a medical emergency, a bad investment, an upside-down mortgage, over-extended credit or the loss of a job are some of the most common reasons an individual may be considering filing for bankruptcy.

Bankruptcy is not available to people who are simply looking for a way to obtain possessions without the intention to pay. The majority of people who file for bankruptcy do so strictly out of necessity. Good people, who would not have otherwise fallen behind on their financial obligations if circumstances in their life had not changed in such a way as to make it all but impossible for them to be able to continue making payments as they originally were able to do, deserve to be helped. Our firm is here to provide that help.

When a Southfield bankruptcy lawyer from Marshall D. Schultz perform a means test, he or she looks at whether an individual's income is greater or lesser than the average income of other people in the area in which he or she resides, minus certain exemptions the individual may be qualified to receive. Those who do pass the means test will be able to file for either Chapter 7 or Chapter 13 bankruptcy. If you do not pass the means test, you will still have the option of seeking bankruptcy protection through a Chapter 13 filing.

If you are considering filing for bankruptcy, we will be able to accurately review your finances and administer the means tests to determine what type of bankruptcy may be right for you. Over the years, our firm has filed in excess of 10,000 consumer bankruptcy cases. We have an in-depth understanding of the bankruptcy process and we know the exemptions we can use to help our clients retain the majority of their possessions. To determine which type of bankruptcy will best suit your current financial situation, we advise you contact our firm and schedule to meet with one of our experienced lawyers right away.

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