Means Test For Bankruptcy – Why Choose Chapter 7 If You Qualify
If you earn above the median income for your zip code, the means test for bankruptcy dictates if you qualify to file Chapter 7, and if you don’t qualify, it dictates how much you will be required to pay back through a Chapter 13 bankruptcy plan over a 3 to 5 year period.
What are the benefits of Chapter 7 vs Chapter 13? Depending on your state, both chapters allow you to discharge debt; they allow you to keep exemptions such as your house, car, and qualified retirement plans. They both allow you a financial fresh start to life, right? Not exactly, in a Chapter 13 bankruptcy your debts are only discharged after you complete a 3 to 5 year repayment plan. That’s right; you get a fresh start after 5 years of sending all your disposable income to a trustee every month.
The major pitfall of Chapter 13 is the five years that you are stuck in the repayment plan. That is five years of your life that you aren’t putting disposable income towards savings, rebuilding your credit, and rebuilding your financial life.
Bankruptcy is supposed to be a fresh start so that you can start contributing to the economy again. Why be penalized for earning a high income? High income earners especially have the ability to reinvigorate the economy by increasing the velocity of money, credit expansion, investing, savings, and job creation. You can’t do any of these things if you are riddled with debt or if all your disposable income is going to a Chapter 13 repayment plan for five years.
Take advantage of all the deductions that are allowed to you in the means test for bankruptcy so that you can get your debt discharged in a Chapter 7 and start contributing to the economy again! It is the high wage earners that this economy needs to be out there spending money, investing, and creating jobs. You deserve the same fresh start that below median income earners, small businesses, and major corporations get. You deserve an immediate Chapter 7 discharge of your debt and the ability to rebuild your life, credit, and finances immediately, not 5 years down the road.
MeansTestForBankruptcy can show you hints based on your unique situation to maximize your means test deductions and improve your chances at a Chapter 7. Start now, some of these changes take time to impact your test results.
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