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
Get ready to avail benefits under the Test which is the result of BAPCPA -the new Bankruptcy law. Chapter 7 Means Test is the new and modified version of the Bankruptcy law envisaged under the BAPCPA. The purpose is to prevent people from abusing the terms and conditions written under Bankruptcy law. With the modified Chapter 7 bankruptcy, it has become quite easy to apply for the bankruptcy and get the best way out from the losses that have incurred in your business. Make sure that you understand all the written protocols in order to secure the benefits provided under this new bankruptcy law.
Make sure that you study the Chapter 7 Bankruptcy Requirements in detail. For this purpose you need to hire the services of bankruptcy attorney and discuss your eligibility requirements. You can also look for Test calculator online to find the details.
