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According to the United States Bankruptcy Court, District of Arizona:
As part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which became effective on October 17, 2005, a “means test” was instituted to determine whether or not a debtor is entitled to a Chapter 7 discharge, or whether such debtor must convert the case to one under another chapter of the Bankruptcy Code. The basic purpose of the means test is to compare monthly income and expenses to determine whether or not a Chapter 7 discharge would constitute an “abuse” of the provisions related to Chapter 7 in the Bankruptcy Code.
In other words, when you file for Chapter 7 bankruptcy in Arizona, you must meet some requirements in order to qualify for a discharge of your debt. Passing the Arizona Bankruptcy Test is the only way to qualify for Chapter 7 Bankruptcy. If you do not qualify for discharge, you may be able to file bankruptcy under another chapter of the Bankruptcy Code.
One of the biggest mistakes people make when filing for bankruptcy in Phoenix is not consulting with a Phoenix bankruptcy attorney before filing.
A Phoenix Bankruptcy Lawyer can help you:
In order to qualify for bankruptcy under chapter 7, you’ll need to take the Arizona Bankruptcy Means Test.
Please Note: The Means Test only applies to higher incomes. If your income is below the Arizona median for your household size, you are exempt from the test. You may then go ahead and file for Chapter 7 bankruptcy.
If you’d rather use a calculator to help you along, click here.
If your income is less than the median, you qualify for Chapter 7 Bankruptcy and meet the requirements of the “Arizona Bankruptcy Means Test.”
After determining income qualifications, you will either:
OR
In order to fill out the Form B122A-2, you will need to provide your completed copy of Chapter 7 Statement of Your Current Monthly Income (Official Form 22A-1). In this form, you’ll determine your adjusted income and calculate your deductions from your income.
After that, you can go ahead and fill out Form B122A-2.
It’s important to note that not all debts are dischargeable in Arizona. Below is a list of debts that may not be discharged under Chapter 7 or Chapter 13 bankruptcy. Also, please remember that any secured debts (home or car payments) must be continued if you intend to keep that property.
If you file under Chapter 7, you will still be responsible for the following debts after your discharge:
In addition, certain debts may be declared non-dischargeable by a Chapter 7 bankruptcy judge if the creditor challenges your request to discharge them:
Struggling with bankruptcy in Phoenix? You don’t have to struggle – simply call the Phoenix bankruptcy lawyers at Davis Miles McGuire Gardner, PLLC. Our team of bankruptcy attorneys is knowledgeable and highly experienced with Arizona bankruptcy cases. If you’re worried about your Arizona bankruptcy, schedule a consultation with one of our excellent bankruptcy attorneys in Phoenix today.
What is the Arizona Bankruptcy Means Test? | Davis Miles McGuire Gardner, PLLC – Phoenix, Arizona
Our experienced attorneys provide an array of legal services across several practices.
We’ve helped thousands of people find solutions to problems. We’d love to help you too.