What Is the Bankruptcy Means Test?
Aug. 9, 2019
When you feel like you cannot handle your debts, then it is natural to consider filing for bankruptcy. Chapter 7 bankruptcy in Oregon pays off some of your debts by selling different properties. If you do not have the property to sell, then you can discharge your debts. Now, not everyone is eligible for bankruptcy. Here is what to know about those who are.
According to the Balance, you have to pass a bankruptcy means test in order to qualify for bankruptcy. This test compares your income to the median family income for families similarly sized. If your income exceeds the median income, then you may not qualify. You must take the means test if over half of your debt comes from consumer purchases.
In addition to the means test, you have to be clean of any bankruptcy cases for at least eight years. This rule is in place to discourage people from running up their debts and then filing for bankruptcy often. For those who wish to file for Chapter 7 bankruptcy, you have to receive some form of credit counseling. These counseling courses are from government-approved credit counseling agencies.
Consumers may file Chapter 7 bankruptcy if he or she is single or if he or she files jointly with the partner. With Chapter 7 bankruptcy, you can use it if you happen to be a sole proprietor. If you are a half of a partnership, then you can use it for the debts that you have a personal interest in paying.
All of the above information is for educational purposes only, regarding Chapter 7 bankruptcy. Nothing here is legal advice.