The Means Test And Chapter 7 Bankruptcy

Can you file Chapter 7 bankruptcy?

Eligibility for Chapter 7 depends on income. If your household income is below the median income in your area, you are automatically eligible for Chapter 7 bankruptcy.

If your household income is higher than the median, you must go through the means test. Congress created the means test in 2005 to control who could file Chapter 7.

What is the means test?

The means test looks at your average household income for the six months prior to filing. Each client will need to provide pay stubs for that period. Our office will run an analysis to determine your average monthly income during that period, and will then run you through the means test.

The test is designed to calculate your ability to pay some of your debt through a Chapter 13 payment plan. If the test determines that your “disposable monthly income” is high enough, you will be forced to file through Chapter 13 of the bankruptcy code.

Orlando, Kissimmee, Celebration, Central Florida Bankruptcy Attorneys Can Help You

Our office will help you through the means test to give you the best chance of qualifying for Chapter 7. Call today for a free consultation.