Author: Jack Andreas
The hardship in finance could lead you to fail paying your debts. Be it your mortgage, your car loan, your personal loan or the most common loan like credit card, the debt problem will turn into difficult times in your life. The creditors will send their debt collectors who will find you in the office if you have avoided them at home. The reminder, second reminder and final reminder will be daily stressful things in your life. You can file for bankruptcy chapter 7 to wipe out you debt and start a new life without debt. But what should you do if you fail the mean test and your petition is rejected?
The mean test will examine whether you have higher income than the mean income of the state. Bankruptcy chapter 7 is only approved for someone who has big financial hardship and eligible for financial assistance. Failure to the mean test will automatically make you unqualified for the bankruptcy chapter 7 to wipe out your debt. You may ask the detail of the mean test to your Baton Rouge Bankruptcy Attorney. You can confirm how much the mean income of your state and determine the position of your current income compared to it.
If you are not qualified for chapter 7, then you can proceed to the chapter 13 of Bankruptcy Law. The chapter 13 is the legal proceeding to have your total outstanding debts consolidated and the payment will be arranged the repayment for a lower covenant in a period up to 5 years. Bankruptcy lawyers baton rouge could advise you how to get the best covenant and the most favorable payment period.
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