Crete Bankruptcy Lawyer States That Means Test Centers On Income &am...

The whole point of the means test is just this – it’s so people that have the ability to repay a portion of their debt, the government wants you to do a Chapter 13 and repay a portion. If you don’t have the ability to repay a percentage of your debt and you are making under a certain dollar amount, they will allow you to get a fresh start.

The more people you have in household, the more you can make and still qualify for Chapter 7.  So, someone who is married with four kids in the house, they can bring in a lot of money and still qualify for Chapter 7. If you are single and you make a lot of money, no, probably not. You are probably going to have to look to a Chapter 13.

Employment information, you’ve got to know where they are working. You’ve got to know where the spouse is working even if the spouse is not filing. You are going to write non-filing spouse above that second section there. The third box would be like a second job or a part-time job. We just need to know everything about it.

Okay, let’s talk about the income. We are going to ask for paycheck stubs so these numbers don’t have to be exact on this form at all. In fact, I don’t even want you to sit there and go through the minutia of it. What I do want you to do though, is if they have a paycheck stub is I want you to find out the pay frequency and circle it in the middle of the page there.  And you can take the gross and you can take the net. If someone is paid once a week, you multiply by 4.33.  We need to know the gross and net.  If they are paid every other week, you multiply by 26 and divide by 12.