Bankruptcy Means Test

Bankruptcy Lawyers In Delaware

In the state of Delaware there is a method of qualifying for bankruptcy. While most people can claim bankruptcy if they are in severe debt, they may not be able to decide which option they will file. Delaware gives a bankruptcy means test to potential bankruptcy applicants. This test, and other factors, will play a large part in what debt relief option you choose.

Contact the Delaware Bankruptcy Relief Attorneys at Carucci Di Lorenzo by dialing 302 654 5083 to discuss what option is right for you. You can also click here to email a Delaware Bankruptcy Law Attorney at Carucci Di Lorenzo. They have an office on King Street in Wilmington, Delaware and service those going through financial hardships throughout all of Delaware.

The Bankruptcy Means Test In Delaware

The bankruptcy means test determines which bankruptcy avenue is best for you and your situation. The test stems from a formula that is designed to prevent high income individuals or households from filing for a Chapter 7 bankruptcy as they may have the resources to pay off their debt. In many situations high income persons may qualify to file for a Chapter 13, which is a repayment plan.

Individuals with a higher than average income may still qualify for Chapter 7 relief in Delaware if they have unusually high expenses such as mortgages and car payments. An experienced Delaware Bankruptcy Lawyer will take you through the means test and together you can decide the best plan of action.

The Chapter 7 Means Test Formula

The means test essentially deducts monthly expenses from your current monthly income. Your current income is determined by your income averaged out over the last 6 months prior to filing bankruptcy. The amount left over is your disposable income. If your disposable income is too high you may not be able to file Chapter 7 in Delaware.

Also, your income is compared to the median income for  your state. That comparison also will help to determine what bankruptcy option you qualify for. If your income is less than the median income in your state you can usually qualify to file a Chapter 7 bankruptcy.

Contact A Delaware Bankruptcy Law Office For A Free Consultation

Contact Carucci Di Lorenzo, LLC to discuss which bankruptcy, or debt relief option, is right for you. They will explain all viable options to you so that you can make the most informed decision possible. Call the Delaware Bankruptcy Law experts at Carucci Di Lorenzo by dialing 302 654 5083. You can also click here to email the Delaware Bankruptcy Lawyers at Carucci Di Lorenzo, LLC. 

Carucci Di Lorenzo Bankruptcy Lawyers handle bankruptcy and debt relief cases throughout all of Delaware including: Wilmington, Pike Creek, Hockessin, Newark, New Castle, Bear, Glasgow, Middletown, Smyrna, Dover, Harrington, Milford, Georgetown, Seaford, Laurel, Greenwood, Millsboro, Lewes, Milton, Rehoboth Beach, Dewey Beach, Bethany Beach, Fenwick Island and Ocean View.