
Means Test Attorneys in Los Angeles
Determining Chapter 7 Bankruptcy Eligibility
Since the October 2005 bankruptcy law changes were passed, individuals wishing to file for Chapter 7 bankruptcy must pass the means test. This test is designed to determine if a person has enough disposable income to repay any of his or her debts. It is a complex formula that takes your income, expenses, and total amount of debt into consideration.
At RHM LAW LLP, our Los Angeles bankruptcy attorneys have a detailed understanding of the means test. We have helped thousands of people in Los Angeles and other Southern California communities obtain debt relief through Chapter 7 bankruptcy, allowing them to rebuild their financial future on more solid footing.
Call us at (213) 344-0043 to arrange a 30-minute complimentary consultation and learn if you pass the means test.
What Is the California Means Test?
The means test is an attempt to limit Chapter 7 bankruptcy to those who are truly unable to pay their unsecured debt. It was created to encourage those who are able to repay even a small portion of their debt to file Chapter 13 bankruptcy, the debt reorganization plan.
The first part of the means test compares your monthly gross income for the past six months to the median income in California. If your income is less than the average, you probably qualify for Chapter 7 bankruptcy. If it exceeds the median, deductions for housing, child care, medical expenses, and other costs are applied to determine a monthly net income figure.
Not being keenly aware of the means test could cost you hundreds of dollars each month. An experienced bankruptcy lawyer can help you navigate this test and save you money.
What is the Alternative?
If you make too much money to file Chapter 7 bankruptcy, all is not lost. You may file Chapter 13 instead. With Chapter 13 bankruptcy, your unsecured debt is rolled into one monthly payment, determined by your ability to pay, which you make over a period of three to five years. After the designated time is over, all remaining unsecured debt is discharged. One benefit of this type of bankruptcy is that you can remove junior liens, including second and third mortgages.
Experienced Bankruptcy Lawyers Helping You Get a Fresh Start
Calculating the California means test is complex. One simple mistake could result in the dismissal of your bankruptcy petition. Protect yourself by speaking with our bankruptcy lawyers in Los Angeles.
Contact us today to schedule a 30-minute complimentary consultation and discuss your eligibility for Chapter 7 bankruptcy.

RHM LAW LLP
Meet Our Los Angeles Bankruptcy Specialists
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M. Jonathan Hayes Senior Counsel
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Matt D. Resnik | Partner Partner
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Roksana D. Moradi-Brovia | Partner Partner
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Russell J. Stong III | Associate Attorney Senior Associate Attorney, Los Angeles Office
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W. Sloan Youkstetter | Associate Attorney Senior Associate Attorney, Los Angeles Office
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David M. Kritzer Senior Associate Attorney, Encino Office

Client Reviews
What Clients Say About Working With Us
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Thank you for your great work on behalf of Ms. Johnson. Without the support of pro bono attorneys we couldn't do all the work we need to do, and your firm in particular is outstanding.
- Skip K. -
I worked with David Kritzer at this firm, and he was great. He negotiated on my behalf with a credit card company and was able to settle with them for much lower than I could have on my own thanks to his knowledge and expertise in the field. If you have a debtor on your back go to him to get it taken care of.- Kelly S.
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Matt is the best bankruptcy attorney in Sherman Oaks. I consulted with Matt over a chapter 7 bankruptcy. I had issues with overwhelming credit card debt after Chase increased it's APR for no reason. It set off a chain of events that were really hurting me. He made me feel like I had options, all was not lost, and I could rebuild my credit after the 7. I had some concerns about a piece of property I was having issues with and Matt also turned out to be a real estate lawyer as well! I recommend this office to anyone who is unsure of their financial situation. It doesn't hurt to find out your options.- Max B.
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I worked with Matt and his team for about a year to get through the paperwork shuffle and my personal experience was nothing short of fantastic. Legal situations have a tendency to get hairy, but Matt and his staff conducted themselves with professionalism throughout the whole ordeal. To keep it short, let's just say he under-promised and over-delivered. Rarely would I ever say this about an attorney, but overall he was just a great guy. I would not hesitate to have him on my side of the courtroom again. World market is right across the street from his office and I even decided to get his staff a thank you / holiday gift card. World market has excellent craft beer BTW, try the Einstock White Ale. They also validate parking. That just shows this isn't a fake review.- Dean C.
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Dear Mr. Resnik: We wanted to thank you for your professional handling of our loan modification with GMAC mortgage. We are very happy that you were able to accomplish the modification of our loan in such a short period of time. Thank you again for your professional service.
- W and B Mejia -
This is to thank you for the exceptional work of you and your fine staff. In managing my bankruptcy and loan modification, a nearly five-year effort, your performance was stellar. I never felt alone or adrift, key concerns in those circumstances. The outcome was outstanding. As the dank blanket of economic uncertainty continues to depress the hopes of many of us, I keep your business cards and number available for others. Without hyperbole, I can attest that you are present a beacon. Thank you so much.- K.C.
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Fantastic office! I want to thank Matt for taking his time with me and sincere in his assistance. He spent over an hour with me for free during our initial consult. I left knowing exactly what's needed. He not only saved my house but also got rid of all my debt. They are not your typical attorneys and their creativity really allowed me to do things that other attorneys never mentioned in previous consults. Affordable and Outstanding firm and thank you for all you have done! My family thanks you!- David K.
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I filed bankruptcy with this firm 3 years ago and found that they are professional, friendly, and compassionate. I also met with their loan modification department. Unfortunately, they were unable to help because of the type of loan that I have. I really appreciated that they did not lie, waste my time, or take my money in an attempt to modify a loan that was not doable. I've since used their firm for a couple of minor issues and found all of the attorneys to be knowledgeable and considerate. Attorneys Simon and Resnik are amazing!- Shannon J.
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Where to begin? I had a vile evil credit union repo my car over a misunderstanding, they wouldn't work with me even when I offered full payment plus repo fees (this was my first repo!) so I didn't know what to do. I met with a few lawyers but when I met with Simon he broke things down and gave me my options. I needed a car - so I filed BK and included the car to get it back. The evil credit union fought and Simon GOT ME MY CAR BACK!!! His team is amazing!!!! Maria Donna etc!!! These are top-notch pros that'll have your back. I cannot recommend them highly enough. Sincerely they saved my life. LA with no car!? ARGH!!!!!! *THANX ALL!!!!- Tim C.

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A Summary of Bankruptcy Law: Third Edition
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Summary of Chapter 13