What is the means test?
In 2005, Congress implemented the means test as a requirement for Chapter 7 bankruptcy. The means test requires Chapter 7 debtors to earn below a specified amount of income.
Do I need to pass the means test for Chapter 13 bankruptcy?
No, the means test is only a requirement for Chapter 7. If you do not satisfy the means test, you may still be eligible to file Chapter 13 bankruptcy.
How much can I earn and still pass the means test?
The amount is based largely on the median income for a household of your size. However, if your income is above the median you may still pass the means test. Determining eligibility for Chapter 7 can be complex, you should contact a bankruptcy lawyer for assistance.
What if my income fluctuates?
For purposes of the means test, the court will use your average income over the past 6 months. Most often, pay stubs are required to properly calculate the average amount of income earned over the past 6 months.
