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The Bankruptcy Means Test – The Formula To Help You File Atlanta, GA

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The Bankruptcy Means Test – The Formula To Help You File

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When it comes to filing for bankruptcy, there are various ways to do so, depending on income and the type of debts owed. While most attempt to file Chapter 7 bankruptcy, which wipes all out debts, the bankruptcy “means test” has become the standard formula to help determine if one is eligible to file Chapter 7 bankruptcy. In essence, the means test begins by considering gross monthly income over a six- month period, and how it compares to the average income for a household of the same size in that county or state. If a person’s monthly income is less than average, they are free to file Chapter 7 bankruptcy. Even so, not all means tests are this simple.

In some instances, individuals can earn significant income on a monthly basis and still qualify for Chapter 7 bankruptcy. These filers must demonstrate a lot of expenses, including a high mortgage and/or car payments, taxes and more. It all comes down to disposable income, and how much can actually be applied to creditors after all other expenses have been paid. NOLO reports that the means test was designed to limit the use of Chapter 7 bankruptcy, and it does so by deducting specific monthly expenses from a person’s “current monthly income” to arrive at their “disposable income.” Based on the amount of disposable or “usable” income at the end of the month, it is determined if it would be beneficial for the individual to file Chapter 7 bankruptcy.

Another consideration of the means test is consumer debts versus business debts. For instance, only those with mostly consumer debts need to take the means test. Some of these debts include household furnishings, clothing, food, vacation expenses, collectible items, sporting equipment and entertainment expenses.

For those hoping to file for Chapter 7 bankruptcy, it can be an overwhelming and stressful decision. That’s why it’s important to seek guidance and legal counsel from knowledgeable and experienced bankruptcy attorneys like Ira D. Gingold and Jamie L. Gingold.

Gingold & Gingold, LLC, are esteemed bankruptcy attorneys in the Atlanta metro area with decades of experience in helping individuals and families find financial relief and freedom. Even if your bankruptcy filing is a complex one, you can rest assured that we are equipped to advise you with filing, preparing and submitting all of the necessary paperwork to get you going in the right direction. For a free consultation to discuss your personal financial situation, contact the office of Gingold & Gingold, LLC in Atlanta today.

Posted on behalf of Jamie L. Gingold, PC

195 14th Street NE #1604
Atlanta, GA 30309

Phone: (678) 915-2634


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    Jamie L. Gingold, PC
    5.0 / 5.0

    Based on 28 reviews

    Jack L.

    They did an excellent job with my case. Jamie took the time to really listen and understand things. She delved into the details and was extremely knowledgeable and non judgmental. Very professional and they know what they are doing. Would definitely recommend!

    Karen B.

    Dear Mr Gingold, There are so many reasons to be thankful for all you have done and will do. Anyone who has ever had unfavorable experiences with an attorney or the legal system will feel the trepidation that I experienced once I realized that my situation seemed hopeless. It was by chance and happily good luck that I decided to put my future and sanity into your hands. I was mortified at having to deal with my debts by claiming bankruptcy. I remember in our first meeting how you assured me that I was not alone and should not feel ashamed. And, anyone in this position obviously does not have money to spare and you were clear about all the costs and allowing me to pay according to my own ability to do so. You advised me in all aspects of the law, but also, you were at each meeting incredibly supportive and complementary of my personal and professional plans. Anyone else in this situation should feel blessed to have access to your expertise and support.

    Lyla B.

    I thought the process of filing bankruptcy was going to be a difficult one. However, Gingold & Gingold treated me with respect and dignity from the moment I walked through their door. I had the pleasure of working with Jamie. She is very responsive, professional, and knowledgeable. She took the time and listened to my every concern and handled each and every one of them to my satisfaction. My experience with filing bankruptcy under Gingold & Gingold's representation exceeded my expectations in a major way. They gave me such a peace of mind. I am very pleased with my decision of going with Gingold & Gingold to represent me when I filed Chapter 13 bankruptcy.

    Julie T.

    Wow! I am finally out of debt and can say that I am debt free after completing my chapter 7 bankruptcy case with Gingold and Gingold. Mr dangled was very knowledgeable and direct with regard to my debt situation. there were no surprises and the case went as I was advised. The staff was also very helpful whenever I had a question. I will definitely recommend them in the future to my friends.

    Julie T.

    I contacted getting old and getting old regarding some old tax debt and credit card debt that I needed to address and had been putting off. miss Irving in the office was very very nice and put me at ease. I met with Jaime Gingold. She was very nice and explained the procedure to me and what would be left owing to the Internal Revenue Service and the State of Georgia after my case was done. My case has now been completed and I am on my way to a new start. Thank you Gingold and Gingold for all of your help.

    Anna T.

    Amazing! Outstanding!! They went over and beyond..I would recommend them to anyone needing a lawyer!!

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