Salt Lake City Bankruptcy Attorneys

Who is Eligible for Chapter 7?

Not everyone is eligible to file for bankruptcy under Chapter 7 of the U.S. bankruptcy code. In fact, you must pass a means test in order to qualify. The Chapter 7 means test is a specific formula that is applied to determine whether a debtor may have the money to pay creditors in a payment plan under Chapter 13, or if Chapter 7 is their only option. The purpose for this qualification is to reserve Chapter 7 cases for those who actually do not have the financial means for reorganization of debt under Chapter 13.

If you are interested in finding out whether you may qualify for Chapter 7 bankruptcy, consult a Salt Lake City bankruptcy attorney at the Stone Law Firm today. We are dedicated to providing our clients with the personalized attention they need in order to effectively evaluate their situation and provide them with the legal advice they need in order to help them make the right choice about Chapter 7 bankruptcy. We can review your case and see if you are eligible to file under Chapter 7 – and we can then represent you through the entire process in order to help you discharge your debt.

Qualifying for Chapter 7 Bankruptcy in Salt Lake City, Utah

The first step of the means test in qualifying for Chapter 7 bankruptcy is a comparison of your income to the median Utah family income for a family the same size as yours, or for an individual if you are just filing for yourself. Note: if your income is higher than the median for Utah, this does not necessarily mean that you will not be eligible for Chapter 7. It simply triggers the second step of the test.

The second step of the means test is actually broken down into several smaller steps, where certain allowable expenses are subtracted from your income in order to determine your “disposable income.” Following this determination, if it is found that your projected disposable income over the next 5 years is less than $100 per month, you will pass the means test and will be eligible to file under Chapter 7.

Ogden, Provo & Salt Lake City Bankruptcy Lawyers

Even if you think that your disposable income may mean that you are disqualified from filing Chapter 7, don’t be discouraged. A Salt Lake City bankruptcy lawyer at our firm can look over your income and expenses run the numbers for you in order to determine if you actually may qualify. This calculation can be confusing, but with our knowledge and experience in this area we are able to make an accurate evaluation. We represent clients throughout all of Salt Lake City, Provo and Ogden and offer a free initial consultation to discuss your matter.

Contact a Salt Lake City bankruptcy attorney today to see if you are eligible for Chapter 7.