Bankruptcy doesn't have to be something bad.
It can actually be the start of something good.
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Your attorney should be as well.

Means Test Exemptions

Measures taken under the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) have limited the overall potential for debtors to file for Chapter 7 bankruptcy. However, the benefits of debt discharge may be available to certain debtors if they qualify for an exemption from the means test. As BAPCPA standards are primarily targeted at the reduction of bankruptcies due to consumer and personal debt, exemptions are largely provided for those with business-related debts.

If you are unsure whether Chapter 7 or 13 would be better for you or whether or not you qualify for your ideal form of bankruptcy, contact Birmingham bankruptcy attorney Paula Greenway by calling (205) 324-4000.

Non-Consumer Debt

When calculating totals for the means test, debtors are expected to measure their income against the state’s median income, which is eventually measured against the total amount of debt that needs to be repaid. However, those with certain types of debt may be able to avoid the means test altogether, allowing these individuals to have more control over which type of bankruptcy they want to file. The following exemptions are available:

  • Business debt
  • Personal tax debt
  • Debt incurred while on active military duty

If this non-consumer debt, which does not include problem debt such as credit cards or home mortgages, makes up more than half of a person’s total debt, the means test can be passed over entirely. These individuals are not necessarily suspected of the sort of abuse BAPCPA was passed to reduce, as consumer debt was originally feared to be the source of an overwhelming number of Chapter 7 bankruptcies.

Contact Us

If you are considering bankruptcy as a solution to your debt problems, there may be additional concerns or exemptions that can assist you. For more information that could help your bankruptcy case, contact the Birmingham bankruptcy lawyers at Greenway Bankruptcy Law, LLC, today at (205) 324-4000.

"When I had my power cut off because I just didn't have the money to pay the power bill, a friend suggested I call Paula Greenway. From the moment I walked in her office I felt like a burden was lifted from my shoulders."
Robin M
"I would just like to say that I was impressed by the staff of Greenway Bankruptcy Law, LLC and their attention to professionalism. They made the bankruptcy process not only pleasant but simple."
Jennifer S.
I can't tell how comforting it is to know your attorney is working on your case. I would and have recommended their service to friend and associates."Ed H.
"I would like to thank Greenway Bankruptcy Law, LLC for the way in which they handled my bankruptcy case."
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Greenway Bankruptcy Law, LLC
505 20th St N #1220
Birmingham, AL, 35203
Phone: (205) 324-4000
Tuscaloosa: (205) 737-3350
Gadsden: (256) 467-6650

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Greenway Bankruptcy Law, LLC All rights reserved. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. The following language is required pursuant to Rule 7.2, Alabama Rules of Professional Conduct. No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

Greenway Bankruptcy Law, LLC 505 20th St N #1220, Birmingham, AL, 35203 | Phone Number: (205) 324-4000