Means Test in Ellensburg & Yakima
Are you considering bankruptcy?
Bankruptcy can be the right debt remedy for a person that is in severe financial difficulties. Filing a bankruptcy petition will result in a court-issued Automatic Stay that will put an immediate end to:
- Creditor harassment
- Foreclosure
- Repossession
- Wage garnishment
The first step of the bankruptcy process is taking the means test to determine if you qualify for Chapter 7, the liquidation of non-exempt assets. The means test became law in 2005 with the adoption of the Bankruptcy Reform Act. The test begins by comparing your income to the average income of a similar-sized household in your area. If your income is less, you will be given the second part of the test, which is used to establish whether or not you have any disposable income. To calculate your disposable income, your monthly living expenses such as housing, clothing, food, transportation, utilities, child care, taxes and alimony will be deducted from your current monthly income. If there is there is sufficient money left over that can be used to pay off creditors, you will be required to file for bankruptcy under Chapter 13, the restructuring of payment plans to creditors. If you are considering bankruptcy, an Yakima bankruptcy attorney from Eastwood Law can administer the means test and ensure that any allowable expenses are properly deducted from your income.
Bankruptcy Attorney in Yakima
Bankruptcy can be an effective legal remedy for individuals and families that are heavily in debt. Our firm has successfully guided many individuals through the bankruptcy process, and will provide efficient and trusted representation. Bankruptcy statutes can be complex and confusing. We can explain the bankruptcy laws and process in detail and discuss the pros and cons of filing a petition. Our firm can also explore other debt relief options so that you have all of the information you need to make the best decision possible regarding your debts.
Contact an Yakima bankruptcy attorney for dedicated representation if you are in financial trouble.