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The means test in North Carolina assesses your ability to file bankruptcy by proving your filing does not constitute an abuse of the bankruptcy system. The means test involves obtaining, completing, and submitting various forms, including a Means Test Calculation form that calculates your current and adjusted income versus regular expenses. Chapter 7 bankruptcy filers in North Carolina are required to take this test to establish their qualification for filing.
Filing for bankruptcy will allow you to get a fresh financial start and get out from under insurmountable debt. Filing on your own can be complex, though. So when our bankruptcy lawyers represent you, we make sure you understand what the means test for Chapter 7 bankruptcy in North Carolina is for and why you will be required to complete it. We also help you navigate the bankruptcy forms, filings, and processes.
What Is the Purpose of the Means Test?
According to U.S. Courts guidelines, if you file Chapter 7 bankruptcy and your average monthly income is higher than the state median income, you will be required to complete a means test. The means test is a multi-part test that examines:
- Your average household income for the previous six months. If you meet the income and household threshold, you will qualify to file Chapter 7 bankruptcy.
- Your payroll deductions and monthly living expenses which will be deducted from your average household income. If your disposable income meets the state’s threshold, you will qualify to file Chapter 7 bankruptcy.
- Your average monthly income versus your unsecured debt. Your average debt over a five-year timespan will determine whether you can file Chapter 7 or 13 bankruptcy.
We will help you complete the test, ensure your income is accurately adjusted, and prove the value of your disposable income.
What Forms Are Required for the Chapter 7 Means Test?
Completing the Chapter 7 means test will require obtaining, completing, and submitting three separate forms. Our bankruptcy lawyer will obtain these forms for you. According to U.S. Courts guidelines, the required forms include:
- Chapter 7 Statement of Your Current Monthly Income
- Statement of Exemption from Presumption of Abuse
- Chapter 7 Means Test Calculation
The means test calculation form requires information from the previous two forms, so our team will help you complete each in the most appropriate order. We will also help you compile the many personal and financial documents needed to complete the required forms accurately.
What Information do I Need to Provide for the Means Test?
Completing the Chapter 7 means test forms will require gathering a plethora of information. We can help you understand the importance of each document and its relationship to the means test. Documents will include:
- Current monthly income
- Statement denying presumption of abuse
- Average monthly expenses
- Number of dependents in your household
- IRS national standards information
- Out-of-pocket health care expenses
- Housing and utility expenses
- Transportation expenses
Many additional pieces of information may be required, and some information may require several documents. Our team will help you compile and organize your documentation to ensure your information is complete and accurate.
How Will Your Bankruptcy Attorneys Help Me?
When you choose Chapter 7 bankruptcy, our attorney will explain the protections that help you retain most, if not all, of your assets. In addition to our ability to handle all paperwork, files, and forms, we will:
- Assess your income
- Assess your debt
- Complete and file all forms
- Represent you in court
We explain the benefits of bankruptcy and identify the appropriate bankruptcy chapter for you. We will also make sure your creditors are notified of your filing status, which will free you from intrusive collection efforts.
Read what Previous Bankruptcy Clients Have to Say
Your bankruptcy case is a priority for our entire team. When they talk about our service and support, previous clients say:
- “Through gathering documents, meeting with the trustee, and the final discharge by the court, Mr. Farmer showed remarkable patience… The choice to hire Josh Farmer may have been the best decision I made.” – David
- “Simply put, Caleb did everything that I could possibly have expected and more. Even in the years following the bankruptcy, Caleb and Sandie went way above and beyond… You will not find better people.” – John
Our testimonials page is packed with additional testaments to our commitment to outstanding service.
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Learn More About Qualifying for Chapter 7 Bankruptcy By Calling Today
If you are looking for a fresh financial start, our law firm can help you with the means test for Chapter 7 bankruptcy. Find out more about working with Farmer & Morris Law, PLLC by calling (828) 286-3866 today.
