Qualifying for Chapter 13 Bankruptcy
Because Chapter 13 bankruptcy requires repayment of some of your debts, you must prove to the court that you can afford to do so. At Callahan Law Firm, we are committed to helping you make the best financial decisions for you and your loved ones, including filing for Chapter 13 bankruptcy.
What is a Means Test?
A means test is used to determine eligibility to file for Chapter 13 bankruptcy. If your income is lower than your state’s median income for a same-sized household, you will be able to complete repayment in three years. If it is higher than the state median income, you’ll get five years to repay your debt, and you may need to guarantee specific amounts of money to any unsecured creditors.
Another requirement for filing for Chapter 13 bankruptcy is that you are current on your income tax filings.
