Given the high number of people filing for Chapter 7, the Bush administration passed the Bankruptcy Abuse Prevention and Consumer Protection Act in 2005. The act required people filing for Chapter 7 to pass the “means test.”
The means test measures whether a debtor can pay off some or all of his debts. If a debtor fails the means test, then he cannot file for Chapter 7. However, the debtor still may be able to file for Chapter 13 reorganization bankruptcy filing.
If you or anyone you know is considering filing for Chapter 7, contact the Birmingham bankruptcy lawyer Paula Greenway at 205-324-4000.