Should I File Bankruptcy? Assistance From Springfield Lawyers

There are many warning signs that can alert you to the fact that a bankruptcy filing may be needed. Some individuals avoid these signs because they are worried that filing for bankruptcy will ruin their credit forever or otherwise hurt them financially in the long run. These myths could not be further from the truth.

In western Massachusetts, people who are struggling financially rely upon the attorneys at Sclafani & Moriarty.

Contact us today to schedule a free in-office case evaluation. We have been helping clients with whether they should file bankruptcy for more than 30 years, and we have the skills required to help you as well.

How Do You Qualify for Chapter 7 Bankruptcy Under the Massachusetts Means Test in Springfield, MA?

Filing for Chapter 7 bankruptcy offers individuals a fresh financial start by discharging most unsecured debts, such as credit card balances, medical bills, and personal loans. However, to prevent abuse of the bankruptcy system, Congress established the Bankruptcy Means Test under 11 U.S.C. § 707(b)(2). For residents of Springfield, Massachusetts, qualifying for Chapter 7 requires passing this test based on state-specific and county-level income data. Here is a step-by-step breakdown of how the Massachusetts Means Test works and how Springfield debtors qualify.

Step 1: Compare Income to the Massachusetts Median

The first hurdle of the Means Test is a straightforward income comparison. You calculate your Current Monthly Income (CMI), which is the average of all gross income received from virtually all sources over the six full calendar months prior to filing, pursuant to 11 U.S.C. § 101(10A). Multiply your average monthly income by 12 to determine your annualized income. Then, compare this number to the median income for a household of your size in Massachusetts:

• Below Median Income: If your annualized CMI is lower than the Massachusetts median income for a household of equal size, you automatically pass the Means Test. You qualify to file for Chapter 7 bankruptcy without further financial calculation under 11 U.S.C. § 707(b)(7).
• Above Median Income: If your income exceeds the state median, you do not automatically fail. Instead, you must proceed to the second phase of the Means Test to determine whether you have sufficient disposable income to pay back a portion of your debts through Chapter 13 bankruptcy. Note: Median income thresholds update periodically based on Census Bureau data and United States Trustee guidelines.

Step 2: Calculate Allowed Expenses and Deductions

If your income is above the Massachusetts median, the Means Test calculates your allowed monthly expenses to determine your true disposable income under 11 U.S.C. § 707(b)(2)(A)(ii). Rather than using your actual monthly expenditures for every category, the test uses a combination of standardized figures and actual costs:

1. National and Local Standards: IRS guidelines determine allowable costs for basic necessities, including food, clothing, housekeeping supplies, and personal care.
2. Housing and Transportation (Hampden County Standards): Housing costs—including rent or mortgage payments and utilities—are capped based on local standards for Hampden County. Transportation expenses are calculated using regional standard allowances for operating costs and vehicle ownership.
3. Actual Necessary Expenses: You can deduct actual expenses for essential items, such as:
   • Mandatory payroll deductions (taxes, Social Security, union dues).
   • Health insurance, dental insurance, and out-of-pocket medical expenses.
   • Court-ordered child support or alimony payments.
   • Term life insurance premiums.
   • Secured debt payments (such as delinquent mortgage or car payment cure amounts).

Step 3: Determine Disposable Income

After subtracting all allowable expenses and statutory deductions from your gross CMI, the remaining amount is your Monthly Disposable Income (MDI) governed by 11 U.S.C. § 707(b)(2)(A)(iii). Multiply your MDI by 60 (representing a standard five-year Chapter 13 plan duration):

• Presumption of Abuse: If your total projected disposable income over 60 months exceeds statutory thresholds set by the bankruptcy code under 11 U.S.C. § 707(b)(2)(A)(i), a presumption of abuse arises. This means the court presumes you can afford a Chapter 13 repayment plan, rendering you ineligible for Chapter 7.
• Passing the Test: If your 60-month disposable income falls below the statutory limit, you successfully pass the Means Test and qualify for Chapter 7 protection.

Special Exceptions and Rebutting the Presumption

Certain debtors are exempt from the Means Test altogether:

• Non-Consumer Debtors: If more than 50% of your total debt comes from business operations, commercial loans, or tax obligations rather than personal/household consumer debt, you are exempt from the Means Test pursuant to 11 U.S.C. § 707(b)(1).
• Disabled Veterans: Veterans whose debts were incurred primarily while on active duty or performing homeland defense activities may be exempt under 11 U.S.C. § 707(b)(2)(D). Additionally, if a presumption of abuse arises, you can attempt to rebut it by demonstrating special circumstances under 11 U.S.C. § 707(b)(2)(B), such as recent job loss, serious illness, or a call to active military duty that drastically alters your financial situation.

Warning Signs That You May Need a Bankruptcy Lawyer

Deciding if or when to file for bankruptcy can be a very important decision in your life. Warning signs that can indicate you need to speak with a bankruptcy attorney include:

• You have received a letter from the bank indicating they want to foreclose on your home
• You have missed a mortgage payment
• You are falling behind on credit card payments
• Creditors have begun to call and harass you on the phone
• You have been sued due to non-payment issues and need to respond to court filings and notices of court hearing dates.

The Benefits of Bankruptcy

Bankruptcy can be complicated, but with the right attorney by your side, it does not have to be as scary as most people believe. We will help you through the process and strive to obtain the many benefits bankruptcy can offer for you. These benefits range from stopping foreclosures on your home and stopping wage garnishments, to preventing creditors from calling you or forcing you to deal with court notices and hearings.

We have an extensive understanding of all chapters of the Bankruptcy Code. We will help you decide whether it is appropriate for you to file and which chapter would help the most.

Contact Our West Springfield Law Firm for Guidance With Your Finances

We have been answering the question, “Should I file bankruptcy,” for decades. We can provide you with honest and straightforward answers. Contact our Massachusetts lawyers to learn what we can do for you.

Last Updated: October 2026