Will new bankruptcy laws stop you from filing chapter 7 Logan bankruptcy?
Laws, bankruptcyChanging laws prohibit some Logan debtors from filing for chapter 7 Logan bankruptcy.
Economic challenges for local companies and individuals are very common right now. The collapse of the credit system has put many Logan citizens in financial strife and unmanageable debt. Bankruptcy is intended to provide relief to businesses and individuals who are struggling with insurmountable debt. The purpose of bankruptcy is also to give these debtors a chance to evaluate their finances and become more efficient with their money.
The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was passed to make sure that bankruptcy benefits are reserved for debtors who are unable to resolve their debts and not abused by others. This makes credit and Logan bankruptcy services more affordable for debtors who genuinely need help. A key component of the BAPCPA is the mean test.
The mean test is used to determine if debtors are able to make payments on their debts or not. The test works by comparing the income of the debtor to the average (or arithmetic mean) income of households the same size. Debtors who have incomes lower than the average for their household size generally pass the test. The court often requires debtors who have higher incomes to file for chapter 13 Logan bankruptcy instead.
Logan debtors who are considering chapter 7 Logan bankruptcy can easily find out if they pass the mean test by coming in for a free consultation. The mean test is one of the things we often discuss in the free consultation and if you bring in some information about your income and family size we can work out if you pass the test really quickly. The mean test is not a problem for the majority of debtors. About 95% of debtors who want to file for chapter 7 Logan bankruptcy pass the test without any problems.
You can find relief from your debt. Come in for a free consultation and you will also be confident that you are making the best financial and legal decisions for your household. Fill out a free evaluation form today and begin your one-way trip to financial stability!
