What is the National Debt Relief Program Act?

Below is a summary of the National Debt Relief Program Act:

  • Within six months before filing, you must take an approved financial management course.
  • If your current monthly income is less than the median income in your state of residence, you may file for Chapter 7 debt elimination of all of your consumer debt. You may not include tax debt, or government-backed student loans.
  • If your current monthly income is more than the median income in your state of residence, you must apply a means test:

Means Test

Step 1: Your monthly income – your monthly expenses = A

Step 2: A x 60 = B

Step 3: If B of step 2 is >$10,000, or >25% of your debt, then are eligible to file under Chapter 13 for debt reorganization

If B of step 2 is <$6,000, or <25% of your debt, then you are eligible to file under Chapter 7 for consumer debt elimination