los angeles bankruptcy lawyer

According to Los Angeles Bankruptcy Lawyer Michael H. Raichelson, even if you think you earn too much to file a Chapter 7 bankruptcy, you may be mistaken. Just because you earn above your state’s median income does not mean that you cannot qualify for a Chapter 7 bankruptcy. All that is typically required is a bankruptcy attorney who has mastered the new bankruptcy laws (and the means test) that went into effect on October 17, 2005
Do not be mislead - Bankruptcy is still an option even if you earn above your state's median income
Author: Michael H. Raichelson
According to Los Angeles Bankruptcy Lawyer Michael H. Raichelson, even if you think you earn too much to file a Chapter 7 bankruptcy, you may be mistaken. Just because you earn above your state’s median income does not mean that you cannot qualify for a Chapter 7 bankruptcy . All that is typically required is a bankruptcy attorney who has mastered the new bankruptcy laws (and the means test) that went into effect on October 17, 2005 -- these laws do not prevent a debtor from filing bankruptcy, they just change the rules. The means test compares your average income over the last six months to the median income for a similar household in your state. It is a two part test. That is the key. First, if your average income over the last six months is no higher than the median income, you pass the means test and you do not need to continue to the second part of the test. Do not be discouraged – even if your income is above the median income, you will still likely pass under part two of the test if you hire a knowledgeable Chapter 7 bankruptcy attorney . Part two of the test analyzes your “disposable income” by applying a mix of real and uniform expenses to your average income over the last six months. An example of real expenses is the actual taxes taken out of your paycheck every pay period. An example of uniform expenses is the IRS standardized allowance for transportation depending on the number of cars you own. If your remaining “disposable income” -- after deducting these expenses -- averages less than $182.50 per month over a five year period, part two of the test is satisfied and you can file a Chapter 7 bankruptcy . The key is hiring a bankruptcy attorney who is an expert regarding the mix of real and uniform expenses that can be deducted in order to get your “disposable income” below the mandated amount.
Article Source: http://www.articlesbase.com/bankruptcy-articles/do-not-be-mislead-bankruptcy-is-still-an-option-even-if-you-earn-above-your-states-median-income-1287565.html
About the Author:
Michael H. Raichelson practices in the following areas of law: Bankruptcy; Bankruptcy Chapter 7; Bankruptcy Chapter 11; Bankruptcy Chapter 13; Bankruptcy Litigation; Bankruptcy Reorganization; Commercial Bankruptcy; Bankruptcy Trustees Rights; Commercial Insolvency; Creditor Bankruptcy; Debtor Bankruptcy; Debt Relief; Foreclosures; Insolvency; Personal Bankruptcy