Bankruptcy - Do I Qualify?

Southern California Bankruptcy Attorney Serving Corona, Orange County, the Inland Empire, and West Los Angeles

If you are considering bankruptcy in the Southern California region, you may be wondering what the eligibility requirements are to file. Since 2005 when changes to the bankruptcy laws were enacted, someone filing for a Chapter 7 bankruptcy must qualify under a "means test," which is a 2-part test which analyzes your financial scene. If you would like to find out if you qualify under this test, it is recommended that you consult with a Southern California bankruptcy lawyer at the firm who can conduct this test based on your specific circumstances. Fransen & Molinaro focuses on bankruptcy cases in the Southern California area with attorneys who have decades of experience in this legal field. When you work with a Southern California bankruptcy attorney at F&M, you have the advantage of a seasoned professional who thoroughly understands the laws and procedures pertaining to your case.

The Means Test

To qualify for a Chapter 7 bankruptcy under the first part of the means test, your income needs to be at or below the state median for a family of your size. If you pass this part of the test, then you qualify. If your income is above the median, then you must move on the second part of the means test which calculates the amount of your disposable income which can be used to pay your creditors. If you do not have enough disposable income left over after your monthly expenses are deducted, you will qualify for a Chapter 7. If you don't qualify under Chapter 7, you can still petition under Chapter 13. You must have regular income to qualify for a Chapter 13 bankruptcy.

Contact a Southern California Bankruptcy Lawyer at the firm to find out if you qualify for bankruptcy in the Southern California area today!