Month: July 2017

What is a Chapter 7 Bankruptcy Means Test? 

In 2005, the bankruptcy rules were changed to prevent people from filing the bankruptcy chapter they wanted. Instead, they’re required to file the bankruptcy chapter they could afford. For instance, many people were filing chapter 7, but could afford to file chapter 13. Chapter 7 is a way to eliminate unsecured debts. This means a person isn’t required to repay creditors. However, they could afford to repay their debts via chapter 13. Chapter 13 is called wage earner’s bankruptcy because they are responsible for repaying secured and secured debts every month for three to five years.

What is a Bankruptcy Means Test?

A means test is one way the bankruptcy courts determines whether the person can file chapter 7 or chapter 13. It’s not a standardized test an individual must pass. Instead, it is a test to decide if the person makes enough money to file chapter 7.

Chapter 7 Means Test Varies by State

To determine whether a person can pass the means test, they must determine their household size. Each state has a different median income for each household size. For example, Georgia means test for a household of four people is $68,085.00. This figure is the amount used for a person wanting to file chapter 7 with and are living with three other people. The number is divided by 12 to find out the monthly total for a household size.

Chapter 7 Bankruptcy Means Test Subtracts Monthly Income from Georgia Median Income

A person must add their monthly income. This income includes sources of income such as retirement plans, pensions, business income and rental income. If the person is unemployed expenses, they must add that amount too.

Next, the chapter 7 bankruptcy effingham county ga means test require the individual to add their expenses. These expenses are things such as car payments, mortgage, utilities and childcare. This total is then subtracted from your income total. This is the amount of disposable income.

What is Disposable Income in a Means Test?

Disposable income refers to the amount paid after all monthly expenses are paid. This is the money a person may save or use to pay for coffee or the movies. If a person has disposable income left after their monthly bills are paid, they may not file chapter 7. This means they failed the test because they can afford to use the money left over to pay creditors in a chapter 13.

Talk to an Effingham County Bankruptcy Lawyer about Filing Chapter 7

It’s important to discuss filing chapter 7 with a bankruptcy lawyer. Sometimes a person may complete the means test on their own and file it. They may conclude they can’t file chapter 7. However, that may not be the case. They may not have added all of their expenses or the wrong income. These factors can make a person fail their means test. Chapter 7 is a legal way to eliminate debts. It’s important to do everything right to obtain financial relief.…

Finding Legal Advice That Will Pay To Know

Dealing with lawyers can be a scary, somewhat intimidating experience for many people. The fact is, however, that by acquiring a little bit of education on the subject, you really can feel confident and knowledgeable the next time you need to seek legal advice. Keep reading to get the foundation you need to proceed.

A good tip to keep in mind when thinking about hiring a lawyer is to write down several questions that you wish to ask him or her. You want to find out what their philosophy is and so on, and asking questions will help give you a clear idea about them.

Legal proceedings can often be confusing and complicated when you lack a background in the law, so make sure to let your lawyer know when you are confused or if you a clearer idea of what to expect from your trial. He or she should return your calls in a timely manner.

When looking for a good lawyer, make sure to obtain personal references. Talking to the local community that have experienced issues similar to you. For instance, if you’re a victim of sexual harassment, speak with a women’s group. Ask them about the lawyers they had and what their experiences were like.


Make sure the lawyer you are hiring is suited for your needs. Like medical professionals, lawyers can be general practitioners or dedicated specialists. Know what general legal area your case is in, and narrow your search for a lawyer within that specialization to find someone with focused training and experience.

If you need legal help, don’t necessarily use the lawyer you have worked with in the past. You may need a particular type of attorney, someone who specializes in the type of case you are involved in. Don’t worry, though. A specialist isn’t necessarily expensive, so you should be able to afford what you need.

Legal Aid

You need to see about legal aid if you’re not sure you have the money. There are lawyers out there who will take your case free of charge, or pro bono. These particular lawyers like volunteering some of their spare time. You can often find legal aid offices listed in the white pages.

When looking at lawyers, try volunteer legal organizations. Many states have these organizations that can help you find a reliable lawyer. They usually include minority bar associations and legal aid societies and they may focus on types of income or particular types of law. You can usually find these local organizations by looking at the state bar’s website.

Legal News

Find out all that you can about lawyers that you are interested in. What sorts of legal organizations do they belong to, for example? Bar organizations often help to keep their members informed of the very lastest in legal news. You want a lawyer who stays abreast of current legal trends!

It is certainly the case for many individuals that communicating with lawyers is no simple task. The truth, however, is that if you spend a little time learning about what makes for a good lawyer and how you can deal effectively with those in the legal profession, you can build a mutually beneficial relationship. With any luck, you now have sufficient knowledge to move ahead comfortably.…