You Might Have To Wait To File For Bankruptcy

May 31st, 2009 by admin

If you’re looking into filing bankruptcy you might have to wait a little while because of the means test, added to the bankruptcy code in 2005. One of the problems with the means test test is that even if the debtor’s income has recently decreased, the use of the six months before the filing date may make the debtor’s income for bankruptcy purposes higher than it will actually be and place him into an income situation where he may be required to file a Chapter 13 bankruptcy.

In a case of a recent decrease in income or a job loss, it may be best to wait and allow the decrease in the income to be reflected in the current monthly income calculation. Current Monthly Income is only one of many factors to consider in deciding whether to wait to file for bankruptcy.

You might seek the advice of a bankruptcy service who will help you decide, whether to file for bankruptcy, when to file for bankruptcy and the type of bankruptcy to be filed.

Posted in Miscellaneous