The Means Test and Chapter 7 Eligibility

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Are you eligible to file for Chapter 7 bankruptcy?

In 2005 Congress changed bankruptcy law to restrict who can file for Chapter 7 bankruptcy. The result was the often-talked about means test. The means test determines if you can realistically pay back some of your debt through a Chapter 13 repayment plan. If you can (that is, if you flunk the means test), you cannot file for Chapter 7 bankruptcy.

In addition to the means test, there are other eligibility rules for Chapter 7 bankruptcy. Here’s where you can find the answers to these and other bankruptcy eligibility questions.

Chapter 7 Eligibility: An Overview

Find out if you might be a candidate for Chapter 7 bankruptcy.

Chapter 7 Bankruptcy Eligibility & Requirements
Learn about the eligibility requirements for Chapter 7 bankruptcy.

Learn About the Means Test

The Bankruptcy Means Test
An overview of the means test, including the basic steps involved in taking the test.
When You Don't Have to Take the Means Test in Chapter 7 Bankruptcy
Some debtors do not have to take the means test in order to qualify for Chapter 7 bankruptcy.
What is Current Monthly Income for the Means Test?
Current monthly income (CMI) is an important part of the bankruptcy means test. Find out what it is.
Can I File for Chapter 7 Bankruptcy If I Am Unemployed
If you are unemployed, you can still file for Chapter 7 bankruptcy. Find out how your employment status might affect your ability to pass the means test.
Business Debt Can Qualify You for Chapter 7 Even With a High Income
If the majority of your debt is business debt, you don't have to take the means test.
What to Do If You Fail the Chapter 7 Bankruptcy Means Test
Learn about your options if you do not pass the Chapter 7 bankruptcy means test on the first try.
Expenses That Help You Pass the Bankruptcy Means Test
If you file for Chapter 7 bankruptcy, certain expenses will help you pass the means test.
Household Size and the Bankruptcy Means Test
The size of your household plays an important role in qualifying for Chapter 7 bankruptcy. Learn how to calculate yours.
Will My Mortgage Help Me Pass the Means Test?
If you are filing for Chapter 7 bankruptcy, having a mortgage may make it easier for you to pass the means test.

Expenses & Deductions on the Means Test

The Car Ownership Deduction on the Bankruptcy Means Test
If you incur expenses for owning or driving a car, you can use car operation and ownership deductions on the bankruptcy means test.

The Marital Adjustment Deduction

Marital Adjustment Deduction: When One Spouse Files Alone
If you are filing for bankruptcy without your spouse, learn the rules on how to count your spouse's income for purposes of the means test.
Marital Adjustment: Types of Allowable Deductions for the Means Test
Here are some of the expenses you can deduct in the marital adjustment part of bankruptcy's means test.

Common Questions About the Chapter 7 Means Test

I Just Got a Well-Paying Job. Can I Pass the Bankruptcy Means Test?
If you recently got a high-paying job, it may affect your ability to qualify for Chapter 7 bankruptcy. Learn why.
Can I Deduct Retirement Contributions on the Bankruptcy Means Test?
You can deduct mandatory, but not voluntary, retirement contributions on the bankruptcy means test.

Bankruptcy Eligibility Q&As