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Anyone who wishes to file for bankruptcy under chapter 7 must pass Utah means test. The test is normally used on higher-income earners. This means that if a person’s income is below the Utah median for their household size, then they are exempted from the test.
But, in case your income is above the Utah median, then you will be required to complete the means test calculation. The main purpose of the test is to find out if you are capable of repaying some part of your unsecured debts under a chapter 13 bankruptcy. It is important to talk to an experienced bankruptcy attorney Ogden Utah before taking the test.
Exceptions for the means test
Those whose debts are mainly consumer debts are usually exempted from the means test. Additionally, disabled veterans who incurred their debts while on active duty are also exempted. Sometimes you may require the services of a good Ogden bankruptcy attorney to prove your case.
Utah Median income
Averaging an individual’s monthly income for the past six months arrives at the average income of a household. In case a person is beyond the median income limit and their income has reduced over the past six months, then they might be brought under the Utah median income if they wait for at least one or two months.
What goes into the test?
Those whose income is above the Utah median income are required to complete the test by calculating their income as well as expense information. An Ogden bankruptcy lawyer can be of great help when it comes to completing the means test.
Why you need a bankruptcy lawyer
A Mountain View Law Group bankruptcy attorney Ogden will help you understand the whole process involved in the mean test. This will save a lot of time and speed up the process. Mountain View Law Group has helped many people in Utah with regard to different bankruptcy issues.
Our clients rave about their experiences with Mountain View Law Group. Check out what they have to say.
