What is a means test?

A means test is a tool used in Chapter 7 Bankruptcy Law in New Hampshire to determine if a person is eligible to file for bankruptcy. The purpose of the means test is to ensure that individuals who do not have sufficient income to repay their debts are not able to use the bankruptcy process to simply discharge all of their debts. The means test looks at an individual’s income levels compared to their expenses in order to calculate disposable income. If a person’s disposable income is above a certain threshold, then they are not eligible to file for bankruptcy under Chapter 7 of the Bankruptcy Law in New Hampshire. The means test also looks at certain types of debt and whether they qualify to be discharged in a Chapter 7 Bankruptcy. For example, educational loans, child support payments, and government-backed loans are generally not eligible to be discharged under Chapter 7. The means test is used to ensure that individuals do not try to discharge debts that they are not eligible to discharge under Chapter 7 of the Bankruptcy Law in New Hampshire. The means test is a helpful tool to determine if a person is eligible for Chapter 7 Bankruptcy in New Hampshire. It helps ensure that individuals do not abuse the bankruptcy process by filing for bankruptcy without having a true financial need to do so. It also helps ensure that those truly in need of financial relief are able to get the help they need through Chapter 7 Bankruptcy.

Related FAQs

What happens to my debts when filing for Chapter 7 Bankruptcy?
Are state and federal tax obligations dischargeable in Chapter 7 Bankruptcy?
What debts can be discharged in Chapter 7 Bankruptcy?
Will filing for Chapter 7 Bankruptcy stop wage garnishments?
What is a means test?
What debts are not dischargeable in Chapter 7 Bankruptcy?
Do I have to list all of my debts when filing for Chapter 7 Bankruptcy?
How long does it take for the bankruptcy filing to be finalized?
Is there a possibility of my case being dismissed when filing for Chapter 7 Bankruptcy?
Are there different types of Chapter 7 Bankruptcy?

What is a means test?

Related FAQs

Related Blog Posts