Chapters

News and views from Virginia Bankruptcy Attorney Russell Adams

Can anybody file for Chapter 7 bankruptcy?

Under the new Bankruptcy Law, anyone who has earned more than the median income for that person’s state over the six months prior to filing for Bankruptcy will be required to take a “Means Test” to determine if they can file a Chapter 7 Bankruptcy. The results of the Means Test, which deducts certain expenses as allowed by the IRS, and certain secured debt payments such as car payments and mortgage payments, from the individuals average monthly income, will determine whether that individual is eligible to file for Chapter 7 Bankruptcy protection. Those who are not eligible for Chapter 7 may need to file for protection under a different Bankruptcy chapter.
 

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