The Means Test & Bankruptcy in IL
Wondering If You Qualify for Chapter 7?
No matter how hard you work, it seems that you can never catch a break.
The bills just keep coming in faster than your income, amassing more and
more debt every month. This is a sure sign that you need to contact a
Chicago bankruptcy attorney for help. Smith Ortiz, P.C. has the knowledge and skills to help you turn
around this financial disaster and get a fresh start. With over 25 years
of combined experience with bankruptcy law, we can help you turn your
our team has the resources to determine if Chapter 7 bankruptcy is the best option
for you. Before filing, federal law requires debtors to pass the means
test, which can be complicated to understand. We are here to answer your
questions and pursue the lasting financial relief you need.
Determining Chapter 7 Eligibility Using the Means Test
Chapter 7 bankruptcy is the most common form and exists for individuals who don't have
enough income to cover all their debts. As such, the means test prevents
people from taking advantage of the system by taking a close look at the
You are required to answer two questions according to the means test:
- Is your monthly income less than the median income for a similarly sized
household in Illinois?
- Do you have enough disposable income to repay certain debts?
If you answer "yes" to the first question, you are automatically
eligible to file for Chapter 7. If not, you must calculate whether you
have enough "disposable income" to pay off a portion of your
unsecured debts. Disposable income is everything left over after your
monthly expenses have been covered.
If your disposable income exceeds a certain threshold, you may be required
to file for
Chapter 13 instead. Chapter 13 bankruptcy requires debtors to make monthly payments
on certain debts over a three-to-five-year period.
File Successfully with Our Chicago Bankruptcy Lawyers!
We believe that everyone deserves the chance to start over financially.
This is why
our bankruptcy attorneys have dedicated ourselves to making financial relief a reality to many
individuals struggling with debt.
Take advantage of our expertise by
calling Smith Ortiz, P.C. today. Your
free consultation is the first step toward lasting change!