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What If You Fail the Means Test?

Many debtors attempt to file for Chapter 7 bankruptcy, but aren’t able to do so successfully as they are unable to pass the necessary means test due to making too much income. Although there are some factors that can modify a person’s means test result, having an income that is significantly over the state average may leave people in serious debt without the option to file for Chapter 7 bankruptcy. However, even in these cases a person may have other options available to them.

If you’re looking for a way to manage your cumbersome debt, our attorneys may be able to help you by informing you of your options and potentially helping you start the bankruptcy process. For more information about debt solutions, contact our Joliet Chapter 13 bankruptcy lawyers of the Law Offices of Stuart B. Handelman, P.C., today at 815-722-2201.

When Chapter 7 Bankruptcy Isn’t an Option

Chapter 7 bankruptcy can offer a debtor the opportunity to have their debts discharged, but it is often at the cost of property liquidation. However, due to the speed and scope of Chapter 7 bankruptcy, it’s a very popular choice for many debtors desperate to get out of debt. Yet, many debtors are not eligible to file for Chapter 7 relief due to bringing in too much income, according to the means test. In these cases, the following options may be available:

  • Debt negotiation
  • Filing to stop creditor harassment
  • Chapter 13 bankruptcy

In many cases, debtors will opt to file for Chapter 13 bankruptcy if they can’t file for Chapter 7 bankruptcy or it is determined that it will be a better financial decision. While Chapter 13 bankruptcy requires a repayment plan for debt, it can also allow for substantial debt discharging and can even be used to prevent a foreclosure.

Contact Us

If your debt has become an uncontrollable problem in your life, our experienced advisors want to help you find financial relief. To discuss your options in further detail with an attorney prepared to assist you, contact our Joliet Chapter 13 bankruptcy attorneys of the Law Offices of Stuart B. Handelman, P.C., today by calling 815-722-2201.