Although there are a lot of complicated aspects to the means test, the basic formula is quite simple:
- Determine monthly income: The first thing is to determine how much you make every month. This figure is based on the average income you earned during the six months prior to the date of filing.
- Determine expenses: There are certain pre-determined fixed monthly expenses that count for this calculation, including mortgage payments, vehicle loan payments and insurance payments. Other payments like utilities and food can also be considered.
- Determine disposable income: The difference between your income and expenses results in your disposable income.
The lengthy test then disqualifies clients with high incomes or high disposable incomes from filing a Chapter 7 bankruptcy petition, although clients with our experienced debt management lawyers in Atlanta can often find strategies to benefit their unique situations. You still might be able to reorganize your debts into a more manageable payment plan with the Chapter 13 process. There are also many alternatives to bankruptcy we can discuss at your free initial consultation with our debt management lawyers in Atlanta, Georgia.
There is no pressure or obligation. Contact us today for a free initial consultation with one of our experienced debt-mangement lawyers. Our experienced Atlanta means test and Chapter 7 bankruptcy experts will help you decide whether bankruptcy is right for you.