Bankruptcy

The question may not be “Do I qualify for bankruptcy?” but “Should I file for bankruptcy at all?” Everyone can qualify for some form of bankruptcy (either Chapter 7 or Chapter 13), but that decision may not be the best one for every individual or family.

At Meyer Law, we will discuss your specific circumstances and help you determine the best course of action to fit your needs. Above all, we will take a detailed look at your financial situation and help you determine if and what type of bankruptcy is a good option for you. There are two main calculations that we will help you make:

1) A comparison of your income to that of your state median income level, and
2) A more detailed analysis of your finances, called the “means test.”

Both of these checks will help determine if you qualify for Chapter 7 (“clean slate”) or Chapter 13 (“repayment plan”) bankruptcy. The first step in determining if you qualify for Chapter 7 bankruptcy is to compare your income to the median income for the state of Arizona. To be eligible for Chapter 7 bankruptcy, you must make less than this median income level. We can walk you through this comparison and what it means for you. The next step we will discuss with you is the “means test,” which compares your monthly income to your expenses. There are certain things that we will take special note of here, such as if you own your house, car(s), or other valuable items outright and want to keep them. If so, Chapter 13 may be a better option for you. We will also take a look at how much debt you may have in credit cards, medical bills, or deficiencies on repossessed vehicles.

If you have a substantial amount of debt in these areas, then Chapter 7 bankruptcy may be your best option to help you get a financial fresh start. Ultimately, the means test provides a clear picture of how your income compares to your debt. If need be, it can definitively show the government that you are drowning in debt and need help now.

If you have any questions about your specific financial situation and want advice from an experienced, professional Arizona bankruptcy lawyer, please make an appointment for a free consultation at Meyer Law. We look forward to helping you explore your options.