Means Test
The Means Test
The Means Test was the largest change in the new bankruptcy code. Once you hav learned the difference between a Chapter 7 Bankruptcy and a Chapter 13 Bankruptcy you will need to decide if you qualify for one or both of them. This is done by considering your income and expenses under the Means Test. There are essentially two means tests to take. The Federal Means Test is a complicated set of calculations that can only be completed to the U.S. Bankruptcy Court Trustee's speciications after you know his or her individual allowable expenses. Your Nevada or Las Vegas Bankruptcy Attorney will have this information for you. The best part is, you may not have to take the Federal Means Test if you are able to pass the State Means Test.
Nevada Bankruptcy State Means Test
The State Means Test can be calculated with the published mean income of your individual state as published by the United States Bankruptcy Court. This figure is updated quarterly and is subject to change. It is important to use the right figures in completing this test. If you calculate your eligibility using the wrong figures it can mean the difference between you qualifying for a Chapter 7 Bankruptcy and a Chapter 13 Bankruptcy. If you file bankruptcy relying on the calculation that you qualify for a Chapter 7 Bankruptcy and are then forced to do a Chapter 13 Bankruptcy it will cost you more money and time. It is important to consult a bankruptcy attorney to properly calculate the Nevada State Means Test.
Nevada Bankruptcy Federal Means Test
The Nevada Federal Means Test is much more complicated than the Nevada State Means Test. The Nevada Federal Means test combines expenses and income guidelines published by the Nevada State Bankruptcy Trustee as well as the Federal Bankruptcy Court. Using these numbers and all of the income received from any source withing the last six full months before filing, you will receive either a pass or a fail. This number can be manipulated somewhere between a little and a lot by your bankruptcy attorney. There are certain things that have some wiggle room and can be exagerated or minimized to qualify for either Chapter 7 Bankruptcy or Chapter 13 Bankrutpcy. Your Las Vegas, Nevada, bankruptcy lawyer needs to have extensive experience in bankruptcy to ehlp you effectively in this way. This is why it is so important to trust your Las Vegas Bankruptcy Attorney. You should only hire a qualified and experienced bankruptcy lawyer like ours.