The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 went into effect on October 17, 2005. This Act made fling for bankruptcy more difficult for debtors. Because debtors are required to strictly comply with the new provisions, some of which will be discussed here, diligent debtors will do fine.
The means test is a major change to the law, it was meant to be an objective test to determine whether you are eligible to file a Chapter 7 or 13. The test is based on the average of ALL income, with a few exceptions, received during the 6 months prior to the month of filing the bankruptcy. This average is then compared to the median income for Oklahoma families, as determined by the IRS. If your income is less than the median, you may be in good shape for a Chapter 7. If it is more, we can examine your expenses and help you determine whether you can qualify for a Chapter 7. If, after completing the means test, you still cannot qualify for a Chapter 7, you may want to discuss the possibility of filing a Chapter 13.
Once you decide which chapter you will have to file under, you will need to obtain counseling from an approved credit counseling agency within 180 days before filing the bankruptcy. An attorney can help you find an agency convenient for you.