Georgia Bankruptcy Means Test

One important component of filing for bankruptcy in Georgia is passing the means test. This considers your earnings, looking to see if your average monthly income is lower than the median for your family size. Passing the means test is necessary for Chapter 7 bankruptcy.

For those facing bankruptcy, L. Wayne Gilleland, Attorney at Law, is here to help. Founding attorney Wayne Gilleland has decades of legal experience dating back to 1973. He can help with Chapter 13 reorganization bankruptcy or Chapter 7 liquidation bankruptcy. If you would like to explore your legal options with an experienced lawyer, he also offers free initial consultations. Call today.

What Is The Bankruptcy Means Test?

The bankruptcy means test is used to determine eligibility for Chapter 7 bankruptcy. It requires filers to make a statement regarding their current monthly income. Someone whose disposable income level is too high to qualify for Chapter 7 may still qualify for Chapter 13, which would reorganize their debt into a monthly repayment plan based on their income.

Georgia Bankruptcy Means Test Exemptions And Special Circumstances

There are some bankruptcy means test exemptions in Georgia, along with special circumstances for the bankruptcy means test that may allow you to qualify even if your income is too high. These include:

• Active military service
• Sudden job loss
• Forced retirement
• Cancer or other serious medical conditions
• Recent divorce
• Other unexpected events

The court will consider special circumstances to determine if you should be eligible for Chapter 7 bankruptcy, even if you would not ordinarily pass the means test.

What Happens If You Fail The Georgia Bankruptcy Means Test?

If you failed the bankruptcy means test in Georgia, it indicates that you will not qualify for Chapter 7 bankruptcy, which allows you to liquidate nonexempt assets and eliminate remaining debt. The court believes your income level is high enough that you should be able to repay the debt on your own.

To do so, however, you can use Chapter 13 bankruptcy, which consolidates your debt into a repayment plan that generally lasts for three to five years. This spreads out the financial obligation to make it more affordable based on your earnings.

Call For A Consultation

To learn more about your options after failing the means test or any other aspect of bankruptcy in Georgia, call 478-207-6901 or use the online contact form to set up an initial consultation with an experienced bankruptcy lawyer today.

L. Wayne Gilleland, Attorney at Law, is a debt relief agency. It helps people file for bankruptcy relief under the Bankruptcy Code.