Qualifying for Chapter 7 Bankruptcy

Your Arlington TX bankruptcy lawyer knows the challenges business and individuals are facing in today’s economy. Among the instability and unrest, many are facing bankruptcy. Bankruptcy laws have changed over the years and the Law Offices of David Kohm are here to help you through the bankruptcy process.

Changes in the Bankruptcy Code in 2005 require that any applicant trying to file for Chapter 7 must qualify under the CMI Means Test. This income test was established to help the bankruptcy court determine if an applicant properly qualifies for financial relief under the provisions of Chapter 7. Should your monthly income exceed established income levels created within the means test set by the bankruptcy code, you can be ineligible for filing under Chapter 7.

CMI uses past income figures along with other miscellaneous income you receive currently and any income you received in the past as a determination. CMI is calculated from “income” that you have received six months prior to the month Arlington TX attorney David Kohm files your bankruptcy petition. Income, as defined by the law, is income you’ve been taxed on, monies given to you by other people, and gifts that have a monetary value even though the gift may not have been liquid.

Determining what monies to include as CMI in Chapter 7 bankruptcy is often one of the most complicated aspects of the new law and is difficult for even the most experienced attorneys. Your Arlington TX law firm has the knowledge and ability to help you determine if Chapter 7 Bankruptcy is for you. Give the Law Offices of David Kohm in Arlington a call today at 817-204-0900 or visit them online to fill out the free consultation form.

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