Crestview Bankruptcy Law Firm Explains Assessment Test

Crestview, Fla. – A Crestview bankruptcy law firm, Lewis & Jurnovoy, P.A., shared how the Chapter 7 Means Test works in Florida this month. The law firm considers the need to inform their community of the options available to families in financial distress.

According to Lewis & Jurnovoy, P.A., the Means Test is an assessment used by the courts to determine whether someone is eligible to file for bankruptcy. The test assesses the income, expenses, and outstanding debts that a person has to their name and whether they cannot realistically pay off their debts. If a family passes the Means Test, they can file for Chapter 7 bankruptcy.

For those unsure of what Chapter 7 Bankruptcy is, the law firm also gave a summary. They state, “Chapter 7 is a section of the federal Bankruptcy Code that provides for outright cancellation of most types of personal debts without a repayment plan and for the possible sale of some types of nonexempt property to pay such debts.”

Several documents are necessary to complete the Means Test. As the Chapter 7 bankruptcy attorneys in Crestview explain, documents such as bills, paychecks, and tax records will need to be submitted. The court will most likely require as much documentation as possible. In some cases, a family will go through the whole Means Test to find out they need to provide more paperwork. The best advice in this regard is to be prepared to provide everything that potentially could be requested.

Because the Means Test is a test, there are cases in which families do not pass. For those who do not, it’s usually because the courts determined their income was enough to repay the loans. Fortunately, there are other chapters people can go through to file for bankruptcy if Chapter 7 isn’t right for them.

To find out more about Chapter 7 Bankruptcy and the Means Test, contact the Crestview office of Lewis & Jurnovoy, P.A. Today at (850) 409-3350 or visit their website https://lewisandjurnovoy.com/.