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  • Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
    --Donna
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
    --David
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
    --Anonymous
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
    --Anonymous
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
    --Joanna
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    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.
    --Danielle

Understanding The Means Test

The means test is a formula that the court uses in order to determine eligibility for a chapter 7 or to determine the amount of debt that needs to be repaid in a chapter 13. The means test looks at the last 6 months of your gross income excluding social security or VA disability, to show what the average gross monthly income is. If your 6 month average gross monthly income is less than that of the average for your household size, generally that means that you are allowed to proceed with a chapter 7 bankruptcy.

California’s average gross monthly income for household sizes are as follows (As of 8/2020):

Household Size Median Monthly Income Median Yearly Income
1  

$5,030.00

  

$60,360
2  

$6,605.92

  

$79,271
3  

$7,352.92

  

$88,235
4  

$8,442.92

  

$101,315
5  

$9,192.92

  

$110,315

*https://www.justice.gov/ust/eo/bapcpa/20200501/bci_data/median_income_table.htm

If your gross income is slightly higher than these figures for your household size, there is still a possibility that you could qualify for a chapter 7 bankruptcy. The means test uses IRS standard living expenses for your household size and area. It also allows for tax withholdings and various other limited expenses to be reflected in the means test to lower income. These same procedures are used when determining how much debt can be repaid in a chapter 13 bankruptcy.

As always, there are many factors that go into someone qualifying for a chapter 7 bankruptcy or determining how much debt is repaid in a chapter 13. It is best to contact your Stockton Bankruptcy attorney for a free initial consultation to determine your eligibility.

For more information, contact your Stockton bankruptcy attorney at 209-952-0355.

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