You are struggling financially and are not sure what to do about it. You’ve probably heard about a lot of quick fix solutions that really will end up doing more harm than good. You are now considering bankruptcy, but you aren’t sure if it is the right choice for you or if you even qualify.
Many Kentucky residents are not doing well, economically speaking. If you are one of them, it is nothing about which to be ashamed. You can take steps to turn things around. Step number one is determining bankruptcy eligibility by taking a means test.
Means testing basics
When people hear the word test, a lot of bad memories from school may go through their heads. This is not that kind of test. There are no wrong answers.
A means test is a set of forms that ask questions about your income level and the average income level of the state. Those numbers are then compared in order to determine bankruptcy eligibility.
The documents needed are simply called bankruptcy 122 forms. You can find them online or obtain them from a bankruptcy attorney. Advisors often recommend getting them in person in order to make sure you get everything you need.
Reading the test
After filling out the forms, you’ll be looking at a lot of numbers that may not mean much to you. However, reading the test is actually quite simple.
If your income level is lower than the state median, you may qualify to pursue a Chapter 7 bankruptcy filing. If you income level is the same or higher than the state’s median income level, you may qualify to pursue a Chapter 13 filing. In select cases, those with higher incomes may still file for Chapter 7 bankruptcy if their disposable income is deemed insufficient to pay their debts.
To file or not to file?
If, after you have filled out the means testing forms, you find that you do qualify for either a Chapter 7 or Chapter 13 bankruptcy, you then have to decide if bankruptcy is really your best option. Either chapter can help you get the fresh financial start you desire, but both have some negative points that deserve some consideration before biting the bullet. An experienced attorney can go over the positive and negative aspects of bankruptcy filings and help you make an informed decision.