The Means Test
The "Means Test"
To qualify for Chapter 7, you must pass the "means test" which will assess your total income and assets. Designed to see if you have any disposable income that you could put toward paying off debt.
How it works
The test is only for those who have primarily consumer debts, like credit card or medical debt; you don’t need to pass the means test if your debt is mainly from a business you own. For Chapter 13 bankruptcy, the test also plays a part in setting the repayment schedule.
When you file for Chapter 13 bankruptcy, there is no "means test" to determine whether your income is too high. In fact, opposite forces are at work in Chapter 13 -- if your income is so low that you cannot fund a repayment plan, you won't be eligible for Chapter 13.
The first part of the means test checks whether your household income is below your state’s median income. If you’re below the median income, you’ve passed the means test and can file for Chapter 7 bankruptcy.
Our attorneys will take the time to assess your financial circumstances to determine if Chapter 7 bankruptcy
is the right option for you and your family. Should Chapter 7 not be the best option for you, Chapter 13 bankruptcy
could still provide you with debt relief.
Protect your rights, your family, and your future. Call now at (407) 478-0074
,contact us by e-mail
or complete our contact form; for experienced legal advocacy you can trust.