How A Bankruptcy Attorney Will Determine Eligibility Using A Means Test
Whenever a citizen has an inability to repay their debt over the course of a few years, a bankruptcy attorney should be contacted to seek a reduction in these payments or to liquidate their assets and liabilities. Many bankruptcy attorneys will assist their clients in choosing the right chapter to file under depending on their income level and total amount of assets. For people who make more than the medium salary or yearly income, a bankruptcy attorney will use a means test to determine their eligibility for filing under chapter 7. If it is determined by this calculation that a citizen can repay a certain portion of their debt over the course of a few years, then they will have to file under chapter 13 to lessen their liabilities and keep a certain amount of their property. Foreclosures and collections are halted during a case to help residents prepare.