Chapter 7 Long Island Means Testing: Determine Your Eligibility
What Does Testing Eligibility Mean in Chapter 7 Bankruptcy? If you are an individual attempting to declare Chapter 7 bankruptcy in New York, you may have to pass a series of tests in order to make sure you are eligible. If You Want to Declare Personal Bankruptcy If you are drowning in consumer debt -: https://www.ny-bankruptcy.com/is-chapter-7-bankruptcy-right-for-you/ and you decide to declare personal bankruptcy, the first thing a trustee will look at is which classification you are eligible for. To do this, there is a series of tests to determine how best to deal with your case. For a Chapter 7 case, if the majority of your debt is “consumer debt”, you must complete what is known as a “Means Test”. The Bankruptcy Code defines “consumer debt” as debt incurred by an individual primarily for a personal, family or household purpose. Consumer vs Non-Consumer Debt One item the trustee will look at is what types of debt you have. Most personal bankruptcies are based on consumer debt...