How do I know if a Means Test will be required for my bankruptcy filing?

If you are filing bankruptcy, a Means Test is likely to be necessary. In Chapter 7 and Chapter 13, Means Test results are important. This test determines if you qualify to file bankruptcy based on your income, debt and expenses. In years past, prior to the new bankruptcy laws that went into place in 2005, individuals of all income levels could file bankruptcy. This lead to abuses of the system in many cases. To stop this, the government put in place the Means Test.

Understanding the Means Test

There are several goals of the Means Test. Consider the following:

• The Means Test determines if your income is over the median family income for your state. If so, you do not qualify for Chapter 7 bankruptcy, but can file Chapter 13 in some cases.
• The Means Test also provides information on what your debts and expenses are. If you have too much discretionary income left over after paying your utilities and secured loans, for example, you may not qualify to file bankruptcy.

Taking the Means Test is necessary to file bankruptcy since this is one of the documents that the court will use to determine if you should have your debts discharged.

An attorney will help you to take the Means Test. It is often the case that a bankruptcy attorney can give you an indication of why or why not you may pass even before you hire them to handle your bankruptcy case. Consult an attorney for more information.