If you have been researching information on Chapter 7 Bankruptcy in the state of Arizona, you have probably heard of the bankruptcy means test. Contrary to popular belief, not everyone who files for bankruptcy will have to take the complete bankruptcy means test. In fact, this is usually only done if you are initially ineligible for Chapter 7 Bankruptcy due to your current monthly income being higher than the average current monthly income of a family of comparable size in the state of Arizona. This comparison of current monthly income is actually the first step of the means test and is the only part of the test that everyone must take. If you do not pass it, then you will have to pass the other portion of the means test in order to qualify for Chapter 7 Bankruptcy. Even if you do not pass, however, you should be aware that there are still other options, such as filing for Chapter 13 Bankruptcy, that are available to you.

The second step in the means test is assessing your disposable income. If you will have enough disposable income, after taking into account your allowed expenses, to repay some or all of your debts then you will not be eligible for Chapter 7 Bankruptcy. It is important to note, however, that laws on how much disposable income you are allowed to have and on what constitutes exemptions or allowed expenses will vary from state to state. You will need to know what the rules and regulations are in Arizona in order to properly complete this step of the means test.

Figuring out all of this information can be somewhat difficult, especially when you’re struggling to understand all the rules that pertain to the state of Arizona alone. Many people visit a bankruptcy attorney or a financial advisor to determine whether or not they are eligible for Chapter 7 and if they pass the means test. However, you can bypass this unnecessary expense by using an online means test calculator. These are free and will quickly and easily give you a straightforward answer on whether or not you pass the means test. You will need to have all pertinent financial information in front of you in order to fill out these sites. You must also be sure you are working with a site that is geared toward your state of residence and that is not a scam. You should never have to pay to use an online means test calculator, and if you are asked to do so, you will want to look elsewhere.

If you end up passing the means test, then you can go on and begin the process of filing for Chapter 7 Bankruptcy. If you do not, then you will need to reassess your situation. Consider if bankruptcy really is the right solution for you and if there is any way possible for you to pay off your debts without bankruptcy. Budgeting or simply talking to creditors to work out a viable plan of action can sometimes be the answer to your financial difficulties. If, however, nothing else will work, then you can begin discussing other forms of bankruptcy with a bankruptcy attorney or a financial advisor. Most people who are ineligible for Chapter 7 Bankruptcy will be eligible for Chapter 13 Bankruptcy. In the long run, Chapter 13 Bankruptcy may cost you more up front but it will be gentler on your credit and may provide the aid you are looking for.