If creditors are constantly leaving harassing collection calls and unpaid bills are starting to pile up, filing for bankruptcy may be an option for you to relieve the enormous pressure. Contrary to the harsh social stigma that the word "bankruptcy" has garnered over the years, bankruptcy is an honest option to help you push the reset button on your financial situation and start fresh. In order to apply, however, you must meet certain requirements first.
What is a Means Test?
In New York, Chapter 7 bankruptcy eligibility is determined according to the completion of a "means test," or an analysis of your income and expenses in comparison to the average income for a household of your size in your area. If your income is more than the New York median, you must use a mathematical equation to determine your disposable income over a six-month timeframe. If your disposable income is less than your monthly debts, you may be able to file for Chapter 7 bankruptcy.
If the means test deems you ineligible to file for Chapter 7, Chapter 13 bankruptcy is still an option. Unlike a Chapter 7 bankruptcy where your debts can be discharged, Chapter 13 bankruptcy involves the repayment of your debts by establishing a three-to-five-year repayment plan. A trusted bankruptcy lawyer from our firm can help you take a means test and see which solution is right for you.
Eliminate Your Debt Today – Call (718) 354-8027
At the Law Offices of David Brodman, we understand your struggles and are here to guide you towards a financially secure future. Backed by a 2014 Avvo Clients' Choice Award and more than 15 years of trusted legal experience, our Bronx bankruptcy attorneys have the skills and knowledge you need to get you out of your financial hole. With compassionate and personalized care, we are eager to sit down with you and help you determine the most appropriate financial strategy for your individual needs.
Pursue a new beginning by requesting a free case evaluation today!
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