Bankruptcy Means Test

Debt relief CAN happen. You and your family can emerge from bankruptcy stronger than ever. A knowledgeable lawyer at Gross & Patterson, LLC in Pittsburgh, Pennsylvania, will be with you throughout the process to make sure you understand what is going on and what the next steps are.

Contact us at (412) 567-4732 for a free initial consultation. Our attorneys can help you put debt behind you.

The first step in filing Chapter 7 or Chapter 13 bankruptcy is to take a credit counseling class from an approved credit counseling agency.

An additional debtor education class must be taken in Chapter 7 bankruptcy within 45 days of the meeting of creditors. In Chapter 13 bankruptcy individuals must take this class before your last payment is due under your repayment plan. If you don't, your case will be closed without your debts being discharged.

Bankruptcy Means Test

The bankruptcy means test is the first step in determining if you qualify for Chapter 7  or Chapter 13 bankruptcy. We look at your household income for the last six months before filing.

The Pennsylvania state median income for a family of two is $53,011. If your annual income is below $53,011, then you may qualify for Chapter 7. If you earn more than the state median income, then the means test determines how much disposable income you have available to pay unsecured debt every month. Your residence will most likely qualify for exemption during bankruptcy.

Example: If your disposable income is $500 per month over 60 months or 5 years, you have $30,000 available to pay off unsecured debt. If you owe $100,000, your creditors would get $30,000 or 30%.

The attorneys at Gross & Patterson, LLC will help you through the bankruptcy means test and meet with you one-on-one to discuss if Chapter 7 or Chapter 13 bankruptcy is right for you.

The decision to file bankruptcy is never easy. Contact us for experienced advice and follow through from a qualified attorney.