As many adults can attest to, managing one’s finances is often easier said than done. You might find yourself thinking about filing for bankruptcy in Maryland. Before you can qualify for Chapter 7 bankruptcy, you’ll need to pass the means test. Here’s more information about the bankruptcy means test and what to do if you don’t pass it.
How to take the bankruptcy means test
The bankruptcy means test is a way to calculate your income and expenses to determine if you’re able to pay off your debt. The first step is to determine if your household income is below Maryland’s median income. To do this, you’ll need to collect your income-related documentation for the past six months. This information typically includes bank statements and pay stubs from an employer. If what you earn is lower than Maryland’s median income, you can now apply for Chapter 7 bankruptcy.
What to do if you don’t pass the means test
If your household income is above your state’s median level, there is still hope that you might qualify for Chapter 7 or 13 bankruptcy. You’ll first need to gather documentation about all of your expenses for the past six months. By properly documenting your expenses, you might have enough evidence to prove that your level of disposable income qualifies you for bankruptcy.
Preparing to file for bankruptcy can feel stressful and exhausting. If you would like help during this tough time, contact a bankruptcy attorney. A legal professional may help ensure that your claim gets properly prepared and filed. This might enable you to get one step closer to freedom from debt.