Disposable income explained by Augusta GA bankruptcy attorneys

Disposable income explained by Augusta GA bankruptcy attorneys

Augusta Georgia bankruptcy attorney

You are not eligible to file for Chapter 7 if you cannot qualify for certain new conditions imposed by the 2005 changes to the bankruptcy law. Under the new rules, you cannot file for Chapter 7 if both of the following are true:
Your present monthly income over the last six months to your filing date is more than the median income for a home of your size in GA.
Your disposable income, after deleting certain expenses and monthly payments for debts you would have to repay in Chapter 13, is above certain limits fixed by statute. The calculations are generally referred to as the “means test”. When you have the capacity to repay a certain amount of your debt through a Chapter 13 repayment plan, you fail the test and are ineligible for Chapter 7 bankruptcy.
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