Leventhal Law Group, P.C., in Woodland Hills, California, serves clients in the San
Fernando Valley area. Communities include Northridge, Van Nuys, North Hollywood,
Encino, Santa Clarita, Valencia, Palmdale, Lancaster, Mission Hills, Thousand Oaks,
Simi Valley, Calabasas, Canoga Park, Chatsworth, Porter Ranch, Reseda, Tarzana, Malibu
and counties that include Los Angeles County and Ventura County.
At the Leventhal Law Group, P.C., I help clients understand the means test now required
of people seeking to file Chapter 7 bankruptcy. This test is one of the measures
that was instituted as a result of the 2005 bankruptcy reform act. Essentially, the
means test determines whether an individual can file Chapter 7 or must file Chapter
Call 818-347-5800 to speak with a Los Angeles-area lawyer at Leventhal Law Group,
P.C.. Schedule your free initial consultation today.
The Means Test in a Nutshell
If your current income is lower than the median income in your county, you are eligible
for Chapter 7 and do not have to take the means test. If your income is greater than
the county median, then the means test is applied to determine whether you have enough
disposable income to repay some of your debts. However, determining adjusted income
can be tricky. Some of the factors that go into a determination of your income include
Your household size
Ages of people in the household
Expenditures on the necessities of life to be deducted, such as housing, utilities,
Tax liabilities to be deducted
Other eligible expenses that may be deducted, such as health care expenses, child
support, special needs child care and phone bills
If your income exceeds the median in your county, even after incorporating the allowed
expenses, then in most cases you are not eligible to file Chapter 7 and must file
under Chapter 13.
You Can Still File Bankruptcy in Los Angeles or Ventura County
If you are deemed ineligible for Chapter 7 bankruptcy after taking the means test,
I will apply your attorney's fee to a Chapter 13 filing. You will not lose anything
by trying for Chapter 7 if you (and I) think you may be eligible. Almost anyone can
file for Chapter 13, whatever the results of the means test.