Habib and Zalewski P.C. a Queens New York bankruptcy firm with office location in Nassau County New York, Suffolk County New York, Queens New York, Brooklyn New York, Bronx County New York and Manhattan brings you an informative article on a bankruptcy means test.

Since the new bankruptcy laws have come into effect since the year 2005, bankruptcy lawyers in Queens county do a lot more to help you through the bankruptcy process, but they also cost that much more as well for their extra services they are required to do through the bankruptcy process. Under the new bankruptcy rules, you now have to go through qualification processes to determine whether or not you even qualify to have your debt removed, or how much removed. Therefore, filing for bankruptcy does not automatically mean that your debt is wiped away like it did before the year 2005.
The first thing you must do to see if you qualify to have some, or all of your debt removed is to compare your combined household income with that of the median household income of a family your same size. If your combined household income is less than or equal to the medium household income of a family your same size, then you may qualify to have some or all of your debt wiped away. However, if your income is greater, then you must go through what is called a means test, or in other words, how well you are living within your means.
To go through the means test, all of your allowable expenses are subtracted from your income. Allowable expenses are those expenses deemed absolutely necessary. All other expenses are disregarded. After all of your allowable expenses are subtracted from your income, whatever money you have left is money that you will be required to use to pay back your debt. Therefore, the more money you have left over, the more of your debt you will be required to pay. Therefore, it is possible to file for bankruptcy and still be required to pay all of your debt.
Your Queens County bankruptcy lawyer, however, will help you through all of the qualification processes and the extra paperwork involved. Your bankruptcy lawyer will not only help protect your property and rights, give you legal counseling and advice, help keep the creditors off your back, and negotiate deals for you, but they will also help you with your payment plan should you be required to pay all, or some of your debt. Keep in mind, that even if all of your debt is removed, you will still be required to attend financial counseling to help you better manage your money in the future. This is another new rule that has been in force since the year 2005.
Remember, if you file for bankrutcy, you will not be able to file for bankruptcy again for another 10 years. Therefore, it will be wise to stay out of debt. Setting aside a certain amount to save each month and making that a top priority will aid against going into further debt. Even if you are only able to save a little bit of money each month, that money will accumulate and eventually, you will have a very large savings that will keep on growing. Therefore, when unexpected financial emergencies and obligations occur, you will be more financially prepared.