The Means Test

Qualifying for Chapter 7 Bankruptcy

The federal government has established eligibility requirements to ensure that only those who truly exhibit a justifiable need can receive the benefits of Chapter 7 bankruptcy. The government did not wish to see the benefits of bankruptcy, and the accompanying economic harm suffered by creditors, to be granted in situations where the debtor makes a high enough income that more equitable remedies could be sought (such as through Chapter 13 bankruptcy). These eligibility requirements are judged by courts through a method that has been termed the means test.

The means test is a complicated mathematical formula that first compares your household income to the median income of those in your state with the same family size. The test also considers a debtor’s disposable income and level of unsecured debts. One of the quality bankruptcy attorneys at Arnold, Wadsworth & Coggins can help you calculate your standing in relation to the means test in the state of Utah.

Assistance in Applying the Means Test to You

Because application of the means test can vary significantly from state to state, it is important that you seek qualified local assistance to ensure you have all the accurate information you need to make such a decision for you and your family. At Arnold, Wadsworth & Coggins Attorneys, you can have a confidential consultation with one of the experienced Utah bankruptcy attorneys on our team. At Arnold, Wadsworth & Coggins Attorneys, we know that financial difficulties strike good people and good families who deserve relief; we pride ourselves at treating our clients and potential clients accordingly.

Arnold, Wadsworth & Coggins Attorneys offers FREE Bankruptcy Consultations

If you or someone you care for is facing financial difficulty and is considering options such as bankruptcy, contact an attorney at Arnold, Wadsworth & Coggins to have your questions answered.

Call us for your free initial consultation (801) 475-0123.

Find out more about bankruptcy. View the other pages in this section to get a better understanding about the process.