What is the means test in bankruptcy for California?
You must take a test to see if you qualify for filing for Chapter 7 bankruptcy (also known as “liquidation”) and your debts are primarily consumer debts (not business debts). Generally speaking, in order to file for Chapter 7 bankruptcy, you have to meet minimum income requirements – if your income is too high, you cannot file under this type. This test was designed in order to limit those who truly can pay their debts from filing bankruptcy. There are many factors to consider when seeing if you are eligible to file for Chapter 7 bankruptcy, including how much of your income is “disposable” (what you have after paying allowed monthly expenses) and if your income is more than the median in your state. If you do not pass the means test, you may have to file under Chapter 13 bankruptcy (also referred to as “reorganization”).
If you’d like to know exactly if you can qualify for filing under Chapter 7, contact our expert attorneys at the Manning Law Offices at (949) 200-8755 We always offer free case evaluations.
