Most people file under Chapter 7 bankruptcy because of the three main reasons:

1. It is much faster than the other chapters. With a little effort on your part, you can read about the entire process over the next four to six months.

2. It is also easier to file. No frequent visits to the court.

3. There are no after payments. Once your bankruptcy is discharged, that is, you are debt free. (As part of the 2005 Chapter 7 bankruptcy law, not all debts can be more so with your attorney before filling).

On the other hand, Chapter 7 bankruptcy law has a hook, the court will decide whether you may be used for the file or not. One of the main reasons why you may be denied to a file for Chapter 7 is your income. If it happens to be sufficient for some of the payment of your debts (after your allowed living expenses have been counted), then you may be forced to file under Chapter 13 bankruptcy law.

How to check whether you are filing for Chapter 7 bankruptcy law?

First, you need to do is to calculate your average income over the last 6 months and compare it with an average income for the state you live in. You may file under Chapter 7 bankruptcy law happens if your income or the mistress as the median income of the state you live in.

In the event that your average income is higher than that, and you want an application for Chapter 7 bankruptcy law you need to by a further examination as a means test.

What is a test?

It is a test based on the results calculated for your allowed living expenses.

How to calculate the cost and my life, what can I do to him?

It is actually quite simple to calculate. Take all of your income from one average month and after deducting the costs allowed:

1) bills, transport (gas), food, clothing. (Make sure to IRS figures for this or the court is not in the bill).

2) backed up your monthly payments, such as child allowances, car loans, mortgages and taxes.

After you with the calculation and your average disposable income per month is lover then $ 100, you have the means test and you have a fair chance approve to file for bankruptcy under Chapter 7 bankruptcy law.

If on the other side happens, your disposable income by more than (figure most often mentioned is $ 166, but it can), you are likely to file under Chapter 13 of the Bankruptcy Act. That is, unless you can prove that there are some specific points raised in your account.

For all numbers between $ 100 and $ 166, it is best to talk with your lawyer. For your chance for the filing under Chapter 7 bankruptcy, make sure that you have a lawyer that specializing in bankruptcy and credit repair and good reputation.