If you are considering filing bankruptcy in Mesa, AZ you may have heard mention of a bankruptcy “means test” and you may be wondering what this means. There have been a lot of new bankruptcy law changes over the past few years. With all of the financial hard times that have been hitting people all over the world, there have been a lot of people and businesses filing for bankruptcy. The new laws have been put into action to make sure that the right people are able to file bankruptcy under the correct chapters of the bankruptcy laws.

What is the Means Test for Mesa, AZ?

Before you learn what the means test requirements are for Arizona, it helps to understand bankruptcy means tests in general. The means tests are in place to keep individuals with high incomes from taking advantage of a Chapter 7 bankruptcy and completely liquidating their debts when they have the income available to get on a repayment plan. There have been some people that have considerable incomes who have tried to get a Chapter 7 bankruptcy in order to completely wipe out their consumer debt. The means laws of different states are in place to make sure that certain requirements are met before a person can be eligible for Chapter 7 bankruptcy.

The means test doesn’t mean that a person has to be absolutely destitute in order to qualify for a Chapter 7 bankruptcy. It is simply a means of checks and balances that are in place to ensure that the right people are able to get the right kind of filing for their bankruptcy cases. It also keeps people from being haphazard in their approach to dealing with debt. If someone has a substantial income and tries to simply wash their hands of a lot of debt with a Chapter 7 bankruptcy, they are not making a fair and honest use of the bankruptcy laws that were put into place to help people that legitimately need assistance.

One Simple Step for Passing the Means Test

You will automatically be eligible for passing the means test in Arizona if your monthly income is less than the median monthly income for a household of your size in Arizona. If you meet this requirement there is nothing more to the means test that you have to be concerned with. At this point, if you decide that it is prudent to pursue a Chapter 7 bankruptcy, you have met the requirements of the means test and are able to go forward with filing for Chapter 7 bankruptcy.

Before you file for any type of bankruptcy, it makes good sense to speak with a bankruptcy lawyer or bankruptcy expert to get solid advice. You want to be informed and to make the decision that will best help you and your family get past your financial problems.