Unfortunately, being in debt doesn't automatically mean you can file for a Chapter 7 bankruptcy. Means testing is used to determine eligibility.
How Means Testing Works
Means testing for Chapter 7 filings involves several steps:
- The Statement of Current Monthly Income and Means Test Calculation filed by the person will initially show whether the person is able to make monthly payments to unsecured creditors in the amount required for ineligibility.
- If so, the clerk of the bankruptcy court will send a notice to all creditors that a presumption of abuse has arisen in the case.
- The United States trustee has until 10 days after the meeting of creditors to file a statement as to whether a presumption of abuse exists in the case.
- The United States trustee or any creditor can move to dismiss the case after 10 days have passed.
- The bankruptcy judge will ultimately decide whether the case should be dismissed.
How Steffens Law Office Can Help
Passing the means test means you are eligible to file for a Chapter 7 discharge, but it doesn't necessarily mean this is the best way to deal with your debt. Contact Steffens Law Office today to schedule a case review. We're committed to helping Nebraska residents make informed decisions about using bankruptcy to relieve their debt burden.