Phoenix Means Test Attorney
Learn more about loan modification in Phoenix, AZ, and the Greater Valley Area. Call a lawyer at (602) 466-9631 to learn more today.
Means Test Lawyer for Chapter 7 Bankruptcy in Phoenix
If you need debt relief, there are programs available to assist you. One option is Chapter 7 bankruptcy, which allows you to discharge and restructure your debt burden so you can get a fresh start. If you are considering filing for Chapter 7 bankruptcy, the first thing you’ll want to do is find out if you need to be means tested to determine your eligibility.
If your income is below the median income level in Arizona, then you automatically qualify for Chapter 7 bankruptcy, and you won’t have to be means-tested. There are also means-testing exemptions based on your military status or the type of debt you have. If your income is above the median and you’re not exempt, you will be required to take a means test to qualify for Chapter 7 bankruptcy.
Getting relief for your debt burden will provide you and your family with the peace of mind you need to get back to enjoying the activities that make Phoenix such a great place to live, like watching a Diamondbacks game at Chase Field or hiking at Piestewa Peak and South Mountain Park.
To discover the debt relief strategy that’s right for you, talk to Cy Hainey at Hilltop Law Firm. Cy is a bankruptcy attorney who’s been helping people in Phoenix find solutions to their financial problems for over a decade.
Call (602) 466-9631 to schedule a FREE consultation today.
You Don’t Need To Take a Means Test if You Fall Below the Median Income
The median income is the income amount that divides a population into two groups, with half of people making more than this amount and half making less. If your income is lower than the median income for households of comparable size in Arizona, then you automatically qualify for Chapter 7 bankruptcy, and you won’t be required to take a means test to determine eligibility.
When calculating your total income, you must include the following:
- Wages
- Child support
- Dividends
- Pensions
- Royalties
- Retirement plans
- Unemployment benefits
- Income from rental properties
- Interest from savings accounts
- Household expenses that are paid by others
Exemptions for a Chapter 7 Bankruptcy Means Test
If you meet any of these qualifications, you will not be required to take a means test to qualify for Chapter 7 bankruptcy in Arizona:
- Your family income falls below the median Arizona income level.
- You are a disabled veteran who acquired debt while on active duty.
- You are currently serving in the military reserve or National Guard.
- More than half of your debt total is non-consumer debt or debt that was incurred through business expenses.
What Is a Chapter 7 Means Test?
A Chapter 7 means test is designed to determine how your level of disposable income compares to your overall debt burden. If your disposable income is above a certain level, you will not be automatically eligible to file for Chapter 7 bankruptcy. Disposable income is calculated by adding up all sources of income and then subtracting the following expenses:
- Car payments
- Housing
- Taxes
- Healthcare
- Child support and other court-ordered payments
- Utilities and household expenses
- Insurance payments
- Child support
- Transportation
- Childcare
- Miscellaneous expenses
- Charitable contributions (limited to a fixed percentage of your income)
Filing for Chapter 7 Bankruptcy
When you’re overwhelmed by debt, it feels like you’re on a never-ending treadmill. Filing for Chapter 7 bankruptcy can give you a new lease on life, but it’s a complicated process. Your Phoenix bankruptcy lawyer can assist you with the following:
- Document preparation
- Gathering and organizing financial documentation
- Ensuring complete and accurate financial information
- Legal representation in bankruptcy hearings
- Navigating the legal complexities of the bankruptcy process
Finding the Debt Solution That’s Right for You
Cy Hainey understands that every client is facing a different set of circumstances. He’ll take the time to listen to your concerns and tailor a debt settlement plan to help you get back on your feet again.
Give us a call at (602) 466-9631 to learn more about your options with a free consultation. We’re happy to meet with you in person or via Zoom.