Filing for bankruptcy is not just a matter of going before the courts with all of your bills and having a judge rule that you don’t have to pay them because you are not financially able to. Unfortunately many people think it is that simple. While the Chapter 7 bankruptcy has been put in place to truly help those who have no means of paying their debt, there are some criteria that have to be met in order to qualify for bankruptcy under this chapter.
Some of the requirements that you must meet are to prove that you qualify under the means test. You will have to obtain credit counseling and then seek out debtor education.
The means test is to determine if the income that you have coming in is within the threshold of income for Chapter 7. Its purpose is to ensure that those with higher incomes do not attempt to file under this legislation. These individuals may have to resort to the Chapter 13 bankruptcy rulings. Your bankruptcy attorney can assist you with the means test to make sure it is accurate. This test is based on your disposable income and you have to accurately determine what this is. Then your monthly expenses have to be deducted from this, but they have to be specific expenses. Making a mistake on the means test can result in you appearing as though you are not eligible for the Chapter 7 Bankruptcy procedures when you actually are. Your mistake can mislead you. These are just first steps in the process, and there are many more to follow. There is a great deal of administrative procedures that have to be followed. An experienced bankruptcy attorney is fully familiar with these procedures, and will be able to complete them in a timely manner and get them filed accordingly. Many of the delays before the Houston bankruptcy courts are a result of improper paper work. This can be avoided with the proper legal help.