What Does Bankruptcy Under Chapter 7 Means?
Bankruptcy is a drastic situation where homeowners or car owners come under direct scanner from their respective lenders. Chapter 7 bankruptcy is amongst the most prominent chapters laid under the BAPCPA, which is the new Bankruptcy law, and hence Chapter 7 was modified in the form which is available as Chapter 7 Means Test. The purpose of modification seemed to be quite necessary as the Chapter 7 Bankruptcy was being abused by many in its present form. The good thing to know out here is that all people who earlier qualified for Chapter 7 Bankruptcy will easily qualify for Chapter 7 Means Test. What’s more, in case you are having huge business debts on your head, you can qualify for this new means test. If your “Current Monthly Income” is lying below median income level of the household size of your state, even then you qualify for the Chapter 7 Test. Here the term “Current Monthly Income” would mean the monthly average accrued over the past six months. In case your average monthly income in the last six months is above the median, then you have to deduct the allowable expenses using a complex calculation formula. If at the end of applying the formula you find yourself with money which is left over top pay to the creditors even after deducting the allowable expenses you fail the eligibility of mean test. You can seek Chapter 7 Bankruptcy Information from the Federal government’s website. Browsing through the website will provide you with the detailed information on the norms, terms and conditions
