Best Pay Profits

A quick bankruptcy filing can erase all of your debt, make the bill collectors stop calling, and give you a free pass to a better future. This is how many people think about chapter 7 bankruptcy, but then they learn about the Means Test. For some, this test bursts the bubble of hope and puts a price tag on that pass to a better future.

What is the Means Test?

The means test uses three factors to determine whether you are financially allowed to go through with a chapter 7 bankruptcy filing:

• The median income for households of your size in your state.
• Your total income.
• Your expenses.

In order to be considered eligible for chapter 7 bankruptcy filing you have to meet one of these criteria:

• Your total income is less than the median income for a family of your size in your state.
• Your income is higher than the state median, but you have enough expenses to justify a bankruptcy filing at this time.

The basic goal of the means test is to make sure that people who have enough disposable money to pay their bills are not able to file for chapter 7 and erase debt just to get out of paying. If you have the ability to free up some of your income and pay back your debt, then you should be forced to do so.

If you have enough free income to pay back some of your debt but not all of it, then you will likely be suggested for a chapter 13 bankruptcy filing rather than the chapter 7 filing. Chapter 7 completely erases away your debt while chapter 13 allows you to restructure the payback so it is more affordable to your current income.

When filing for bankruptcy, for whatever reason, the foremost thing you should do is hire a competent bankruptcy attorney. Dealing with the immense stress and emotional trauma brought about when filing for bankruptcy is difficult enough. You shouldn’t have to concern yourself with the labyrinth of legalities to see things through. If you hire the right legal help, he or she will have the professional know-how to shoulder the burden of the courts for you.

Okay then, how do you hire the best bankruptcy attorney for your needs?

Cost

You should not hire someone solely based on cost. The last thing you need to do is employ the cheapest lawyer because of your difficult financial situation. On the contrary, retaining the best attorney you can find will ease your mind. What you need is quality right now, and it will take good money to get it. You don’t need to seek out the most expensive lawyer, just the most qualified.

Get Referrals

Use your own personal network of friends and family to see if they know of a good lawyer. Go into online forums specific to your area and see which lawyers are being discussed. Word of mouth is a great resource for reliable and trustworthy information, but be sure to verify what you learn just to be on the safe side.

Attend Bankruptcy Court

By spending time in court as an observer, you’ll gain valuable knowledge about who the major players are. You’ll see them in action performing under real-world conditions. You’ll find out how they interact with judges and will be able to predict their performance come time for your case. You’ll also discover how organized they are, whether or not they are on time, and how they generally carry themselves. One of these bankruptcy attorneys will be representing you very soon, so watch closely and start taking names.