Understanding the Bankruptcy Means TestThe Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, requires that individuals who are interested in filing for bankruptcy protection undergo a means test. The means test will determine eligibility for Chapter 7 bankruptcy filing. At The Law Office of Robert H. Holber, P.C. in Media, Pennsylvania, we can guide you through the bankruptcy means test. We can help determine your eligibility and discuss your bankruptcy options. Our lawyers are dedicated to helping individuals, families and businesses throughout Delaware County and the surrounding areas obtain debt relief. Call our firm today at 610-565-5463 to arrange your free initial consultation. What is the bankruptcy means test?The bankruptcy courts use a means test to determine eligibility for Chapter 7 or Chapter 13 bankruptcy. The "means test" compares your average income for the 6 months before filing to the median income for Pennsylvania. For cases filed after March 15, 2009, the median annual income for a single wage-earner in Pennsylvania is $78,780*. If your income falls below this median, Chapter 7 is an option. You need to complete Form 22A, a complex 8 page document, to calculate your income based on income and expense data. We assist clients in accurately filling out the form, to properly determine your eligibility for Chapter 7. What if I make more than the median income?If you earn more than the state's median income, the bankruptcy courts will then consider your disposable income. If this amount exceeds a mandated amount, you will not be eligible for Chapter 7 bankruptcy filing. I didn't pass the Chapter 7 means test. Now what?For individuals who do not qualify for Chapter 7, Chapter 13 becomes the next option. Our attorneys can talk to you about obtaining debt relief through Chapter 13 bankruptcy. Our office hours are 9:00 a.m. to 5:00 p.m., Monday through Friday, with evening hours by special appointment. Our office is located in Media, the Delaware County seat, near the Blue Route (476). Contact us today to schedule your free initial consultation. *For a family of four. Law Office of Robert H. Holber, P.C.41 East Front Street
Media, PA 19063
Telephone: (610) 565-5463 ● Fax: (610) 565-5474
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