While the thought of the title may seem counterproductive to one who is considering seeking bankruptcy protection because of the amount of debt that they currently have, there is a method to the seeming madness. When you file for a Chapter 7 bankruptcy you are forced, because of relatively new legislation, to submit to a “means test”.
What this essentially means is that you have to prove that you do not have the disposable income necessary to repay the debts that you have incurred. If you are unable to pass the means test then you may be forced to accept filing for a Chapter 13 bankruptcy which is essentially a court ordered, structured re-payment plan of the debts that you have. The simple fact is that a Chapter 13 can be much more difficult to maintain for the average debtor and the Chapter 7 bankruptcy is by far the cheaper and simpler method to ridding yourself of cumbersome debt that you will most likely never be able to repay.
While nobody is suggesting that you incur many thousands of dollars in new debt in order to be able to enter into a Chapter 7, the fact remains that for some who are literally hanging on the very edge of passing the means test the accruing of the small amount required to pass the means test may well be the best option. Before you do this or anything else related to Chapter 7 or Chapter 13, contact an experienced bankruptcy attorney in Dayton to get the information you need to move forward.