What is the means test for filing Chapter 13 Bankruptcy?
The means test for filing Chapter 13 Bankruptcy in Virginia is a test to determine if a debtor can repay all or part of their debts within a three to five year period. The means test does this by looking at the debtors’ income and expenses over a six month period and determining the amount of disposable income that is available to pay back creditors. The means test starts with the median income for a household of equal size in the debtor’s state, and subtracts allowable deductions for taxes, housing, and other necessary expenses. If the debtor’s income is below the median income, then they are eligible to file for Chapter 13. If the debtor’s income is above the median income, the debtor must go through a more detailed analysis of their finances to determine their disposable income and ability to pay off their debts over the duration of the repayment plan. The means test also helps the court in determining a debtor’s eligibility for filing Chapter 7 bankruptcy instead of Chapter 13.
Related FAQs
What happens if I am behind on my mortgage payments during Chapter 13 Bankruptcy?Are there any limits on how much I can spend in Chapter 13 Bankruptcy?
What are the rules for spending money during Chapter 13 Bankruptcy?
What happens if my income increases during Chapter 13 Bankruptcy?
How do I calculate my disposable income for Chapter 13 Bankruptcy?
What is the difference between a debtor in possession and a trustee in Chapter 13 Bankruptcy?
What happens to late payments during Chapter 13 Bankruptcy?
What happens to my mortgage in Chapter 13 Bankruptcy?
How do I get an order shortening the time to file surviving claims in Chapter 13 Bankruptcy?
How do I modify my repayment plan in Chapter 13 Bankruptcy?
Related Blog Posts
Navigating Chapter 13 Bankruptcy Law: A Guide for Struggling Debtors - July 31, 2023Filing for Chapter 13 Bankruptcy: What You Need to Know - August 7, 2023
Types of Debts That Can Be Discharged with Chapter 13 Bankruptcy - August 14, 2023
Understanding Automatic Stays and Chapter 13 Bankruptcy - August 21, 2023
Comparing Chapter 7 and Chapter 13 Bankruptcy Options - August 28, 2023