Bankruptcy in Pennsylvania – The Means Test – Will I Pass?
In seeking relief from overwhelming debt, people often think that bankruptcy is the best choice. Many people think Chapter 7 liquidation bankruptcy is the best option for them. However, in order to be eligible, you must first pass a means test.
This means test involves comparing your income to those of other families in the same geographic area. Because of this, it varies from state to state. If your income falls below the median for families in your area, you will probably be eligible. If it falls above, you may be considered ineligible under presumption of abuse, which may disqualify you from Chapter 7 bankruptcy.
As of 2011, the median incomes for Pennsylvania are as follows:
- Single Earner: $45,092
- Two Person: $53,091
- Three Person: $66,487
- Four Person: $76,682
If you fail the means test, you may have to file a Chapter 13 bankruptcy instead. If you can afford a Chapter 13, you may want to also visit the possibility of a debt negotiation program that would be affordable and keep you out of bankruptcy altogether.
As a last resort, you could try and wait to file for Chapter 7 again later. For example, perhaps you received a sizable tax refund in the six months prior to taking the means test. If you wait to take the means test until six months after, that extra money won’t count towards your income.
A full service debt relief attorney, such as Harold Shepley of Harold Shepley & Associates, can provide you with information regarding your situation and how you should move forward. Contact them today to find out more information on your debt relief options.
January 9, 2012 Posted in Bankruptcy, Chapter 13, Chapter 7 Tagged bankruptcy, chapter 13, chapter 7, Harrisburg, Pennsylvania Leave a comment
