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New Chapter 7 Bankruptcy Means Test Form Optimized for Debtors

Completing the Chapter 7 means testing form accurately challenges everyone. Familiarity with the law is a decisive advantage for anyone who wants quick results.

The means test determines if an individual may file Chapter 7 bankruptcy. If not qualified, the Chapter 7 bankruptcy means test determines differences in Chapter 13 payments. In a few cases, the law disqualifies people from filing either of these two chapters. A person with a high average monthly disposable income over the last six months, and who has no current income, cannot file either chapter. Despite this trap, discovering a solution may be much easier than you may now think. The means test used for bankruptcy qualification & setting payments can be legally manipulated.

Filing Chapter 7 Bankruptcy Produces Quick Results If Qualified

Means Test Form Rules
The New Means Test Form Rules Can Be Very Confusing

Beginning in 2005, new laws required everyone to take the Chapter 7 bankruptcy means test. The test was designed by lobbyists who represented banks and other financial institutions. The purpose of the new requirement was to prevent ordinary people from discharging debts without payment.

To qualify for Chapter 7, debtors must prove they earn less than the median income level in their state. Those who earn more may however qualify using two different exceptions. These exceptions require complicated calculations and are difficult to satisfy.

People who do qualify may discharge all debts in about four months in simple cases. Complex cases may require a few more months. Those who do not qualify must submit to court supervision while living on a modest budget. Court supervision usually lasts three five years. Most people prefer quick results without the burden of long-term supervision.

The requirement for a quick discharge is that all debtors must comply with all chapter 7 rules for qualification. The bankruptcy chapter 7 rules use the means test, also referred to as form B22A, to limit access.

The Official Bankruptcy Means Test Form B 22A Offers Little Help

The official form designation for the bankruptcy means test form is B 22A. The clerk of the court provides these forms free of charge. In addition, free forms for download are available online.

The official form is similar to an IRS form. It requires accurate information in many complex categories. Despite the required precision, the official instructions provide little in the way of clarification, suggestions or explanations of available options. Most people discover that completing this form correctly is difficult.

In addition, few people recognize valuable opportunities to change results legally. Given a few weeks, or preferably a few months, anyone who files may reduce their monthly disposable income and perhaps qualify for a quick discharge.

How to Change Results Without Paying a Lawyer or High Legal Fees

Chapter 7 Bankruptcy Rules
Conforming with Chapter 7 Bankruptcy Rules Is Always Tricky

Anyone who considers filing has three options to determine qualification for a quick discharge: 1) hire a lawyer, 2) use the official form and hope for the best, or 3) use a debtor's customized form to explain options and maximize results. Lawyers are expensive and seldom complete the calculation completely and accurately during a free initial consultation. Few individuals calculate the best result available, without extensive help, when using the official form to calculate the test themselves.

To obtain the best result and avoid court supervision, the third option is the most profitable. Customized forms should be simplified yet expanded. All options should be explained clearly and supported by many examples. Instructions should provide tips, suggestions and recommendations on how to receive the greatest benefits available under current laws.

In reality, the best lawyers charge high legal fees to scour records completely to claim all income deductions allowed by the means test. In simple cases filed by average consumers, many attorneys increase personal profits by spending less time on each case when fees are low. Motivated debtors must complete the forms them self to obtain the best results without paying exorbitant attorney fees.

Great Results Require Knowledge and Planning at an Affordable Cost

Maximizing means test results is not hard when armed with knowledge. Knowledge alone however is not enough. To get the best results and void unnecessary payments for five years, the best strategies begin months in advance.

With as little as two or three month's lead-time, individuals may claim the maximum benefits allowed by law in record time. Sadly, many people who file miss out on these benefits. Small changes in spending habits, allowing a few strategic debts to slip past due, and maximizing payments in specific form categories combine to make a difference when qualifying for Chapter 7. Many people would qualify for if only spending a few hours to make these changes.

Perhaps spending a few hours is enough to discover a way to avoid a five-year repayment plan under the watchful eyes of a trustee, a court and creditors. A few hours spent wisely today could save thousands of wasted dollars and begin making a solid financial recovery today.

For more information explaining how to claim maximum benefits and improve results, see: Chapter 7 Means Test Strategies.