When you are dealing with financial hardship, it is important that you work with an attorney from the Law Offices of David Brodman. Our firm has more than 15 years of experience providing outstanding representation to clients throughout the Bronx area and surrounding neighborhoods, and we may be able to help you as well. Working with the Bronx bankruptcy lawyer from our firm can provide you with the peace of mind you deserve and the tools you need to get back on your feet.
We treat each client as family and we can help you determine whether filing for Chapter 7 or Chapter 13 bankruptcy can benefit your financial situation. We encourage you to contact our firm to discuss your specific situation in detail. We can assess your circumstances to create a plan of action to suit your needs.
Under the United States Bankruptcy Code, there are a few different chapters of bankruptcy that are offered to consumers. Two of the most common bankruptcy options are Chapters 7 and 13. While any person, property owner, or business in the United States may be eligible to file for bankruptcy, only a select group of individuals can file under Chapter 7. In order to be eligible for this chapter, you will need to prove that your income is significantly lower than the cost of your debts. To prove this, you will be required to take a bankruptcy means test.
Chapter 7 bankruptcy is sometimes referred to as liquidation bankruptcy. Under this chapter, individuals who cannot afford to even make minimal payments toward their debts are granted debt relief. Prior to filing, individuals will have to prove that their income is significantly less than their debts by completing the means test.
The test uses a mathematical equation to deduct monthly expenses from your monthly income or your average income over a six-month period. The amount that is left is known as disposable income, and if your disposable income is less than the amount of debts you have each month, you may be eligible to file for Chapter 7 bankruptcy. If you do not "pass" the means test, you can still reap the benefits of bankruptcy by filing under Chapter 13.
If you are interested in filing for bankruptcy, it is important that you work with our firm's attorney. Attempting to navigate the federal bankruptcy system without the help of a professional can be difficult and risky because the laws governing bankruptcy are often hard to understand. If you are struggling to make ends meet and you are interested in taking a bankruptcy means test to determine your eligibility for Chapter 7 bankruptcy, contact the Law Offices of David Brodman today! Schedule a no-obligation consultation by completing our free case evaluation form online.