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The bankruptcy means test is the starting point of filing for Chapter 7 bankruptcy in Raleigh. It determines whether you’re eligible for this type of debt relief.
For instance, the first step will require you to submit several months’ worth of income statements, which will then be compared with the median income in North Carolina. If your income is greater than the median, you may have to consider filing for Chapter 13 instead.
Because it’s such a technical and complicated process, mistakes are incredibly common. That’s why at Weik Law Office, we make sure every detail is correct in our clients’ means test forms. Committing any of the following mistakes can get your filing thrown out by the bankruptcy court.
4 Common Mistakes Made on the Bankruptcy Means Test
1. Using the Wrong Household Size
Determining the household size to use in your filing can be tricky, because courts tend to disagree on this. For example, some courts think that you should include everyone that lives in your home, while others include only occupants who are financially dependent on the person who will file.
The size of your household has a big impact, because the courts will use it to find:
· Deduction amounts for certain expenses like housing
· the median family income that yours will be compared with
With our bankruptcy lawyers in Raleigh, NC, you won’t have to play a guessing game to determine the correct household size for your means test.
2. Your Income Doesn’t Match Documentation
Your income documentation must be an exact match to the income you indicate on your means test form. This is not a simple matter of just listing down how much you earn every month.
Even the smallest details like the paycheck issuance date or the number of weeks in a month can affect your 6-month average income figure. Got other sources of income during that period? They should be included in your financial documentation as well, even one-time payments you’ve received.
3. You List Child Support That You Don’t Receive
If you’re receiving child support, then it will be counted as income under Chapter 7 bankruptcy in Raleigh. Never list child support as income if it’s not actually being paid to you. On the other hand, you shouldn’t count child support as an expense if you don’t pay it. Without a bankruptcy lawyer double-checking your forms, this is very easy to overlook.
4. Taking Deductions That Aren’t Allowable
401K loan repayments, retirement account contributions, 401K, and college expenses for your child are just a few examples of non-deductible expenses. However, education expenses (if they’re a condition of your employment) would be deductible. Our bankruptcy lawyers in Raleigh, NC will walk you through each item so you don’t list anything incorrectly.
Take the First Step Towards a Debt-Free Future
Weik Law Office attorneys are 100% hands-on with our clients. We won’t just help you get your bankruptcy forms in order – we will help you weigh your options, take care of all legal work, and make sure the bankruptcy process is as dignified and stress-free for you.
Call Weik Law Office today at 919-845-7877 for a free consultation, and set up a time to speak with one of our friendly professionals.