A Comprehensive Guide to Chapter 7 Bankruptcy Means Test

The financial burden of loans and borrowings may seem too much for you. At this time, you can opt for chapter 7 bankruptcy and free yourself from this heavy burden. But for that to happen, you will have to crack the bankruptcy means test.

Doing this all by yourself will be a lot of hassle. So, we recommend getting yourself a chapter 7 bankruptcy lawyer before filing for the test. But before that, you should also read this article to learn about the complete process of passing the "means test."

The Process for the Test

The process seems overwhelming if you look at the complete filing for chapter 7 bankruptcy. However, if you break things down, the picture becomes more apparent.

If we oversimplify the whole concept, the process of filing bankruptcy comes down to one or two of the following forms.

Form 122A-1: This is a legal declaration of your current monthly income. The information in this form will determine whether you will clear your means test.

Form 122A-2: This is where the means test calculation will get conducted.

Let us dive deep into the topic and learn more about these two forms.

Form 122A-1

Depending on your state's median income, this form completely works on your marital and filing status. If you are an individual filing for bankruptcy, this is the form you should prioritize. If you and your spouse are together in this, you can do that with a single document. However, in exceptional cases, you may need different forms. Your legal aid for chapter 7 bankruptcy will help you at a time like this.

Form 122A-2

You only need to fill this form if your income is higher than your state's median income. This form filing determines the disposable income based on your regular income and expenses. It is the "means test" that we talked about earlier. Filling out this form may be too complicated for you. Here is a complete guide that will add simplicity to the process. .

First, the Case Information

You would have to start filling out the form with the case details. In this section, you have to write similar information as the previous form. Take help from your bankruptcy attorney to avoid mistakes.

Now Calculate the Adjusted Income

Now that you have filled in the necessary information about the case, you will have to provide the expenses to calculate the adjusted income.

Deductions

Lastly, you will have to calculate all the deductions; this would also let you minimize your income and file for bankruptcy you needed.

Call for a Chapter 7 Bankruptcy Lawyer

As we said earlier, filing for chapter 7 bankruptcy can be challenging. You will need help from the best chapter 7 bankruptcy lawyer in Oklahoma. That is why we recommend you give us a call. We are Reneau Law Group, one of Oklahoma's most reputable law firms. Call us now to get in touch with our top attorneys.

**Disclaimer: The above article does not imply a relationship between attorney and client, nor does it aim to provide any legal advice.