If you are struggling with debt in Tempe, you may wonder if bankruptcy is right for you. You may have heard rumors that the 2005 changes to the bankruptcy code make it impossible for almost anyone to qualify. Rest assured, these are largely myths. Most people who qualified for bankruptcy before those laws were enacted are still eligible today.
At the Arizona Law Group of Trezza & Associates, our lawyers will work with you personally to help you determine if you qualify for Chapter 7 bankruptcy and if so, if it is in your best interests to file. We are committed to helping people from Tempe and throughout the surrounding areas achieve their debt relief goals.
Contact us to set up a free consultation with an experienced Tempe Chapter 7 bankruptcy lawyer.
Please note: Where you live makes a difference in how you score on the means test. There are a number of standards based on your county of residence, so that a person who lives in Tempe will score differently than if he or she lived in Tucson. If you live in Tempe, it is important to consult with a bankruptcy lawyer who knows how bankruptcy law works in your jurisdiction.
How Does the Means Test Work?
Before 2005, almost anyone could file for Chapter 7 bankruptcy. Today, partly due to aggressive lobbying by lenders, debtors must take a "means test" to determine whether or not they qualify for Chapter 7.
Now, in order to qualify for Chapter 7, you need to meet one of two criteria:
- Household income: Your total household income for the past six months must be below the state median income for a household the same size as yours.
- Disposable Income: Any disposable income you have is insufficient to pay creditors a meaningful percentage of the debt owed to them.
The six month look back period makes it important when you take the means test, especially if your income fluctuates throughout the year. Depending on your circumstances, you may not qualify in July, for instance, but qualify in September. An experienced bankruptcy lawyer can help you make sure you act at the right time.
If, for whatever reason, you do not qualify for Chapter 7, Chapter 13 bankruptcy may still be a useful option for reducing the burden of unsecured debts such as credit card debts.
"Do I Qualify for Chapter 7 in Tempe?"
It is a common bankruptcy myth that most people do not qualify for Chapter 7 bankruptcy. In fact, most people who have enough debt to need to file, indeed qualify for Chapter 7. Remember, though, a missed detail in regard to the Chapter 7 means test could wind up disqualifying you. Work with an experienced bankruptcy lawyer so that all of the information you provide is accurate, and you have the best possible chance of qualifying for Chapter 7.
Contact a Chapter 7 Tempe Attorney
You will find a great deal of valuable information on this website. However, your situation is unique. When you are ready to discuss your case specifically, do not hesitate to contact us to speak with a Tempe bankruptcy law attorney. We represent clients from Tempe, Mesa, Tucson and throughout the surrounding region.
