What Is the Means Test?
What is the means test?
The 2005 bankruptcy law (BAPCPA) imposed a "means test" on who can file for Chapter 7 bankruptcy.
Use this calculator find out where you stand.
This is a very simple test that compares your average household income for the past six calendar months to the median income for your state, If your income is below the median, you qualify for Chapter 7. If it is above the median, you must pass Test 2.
This test deducts expenses from your income to determine how much you can pay your unsecured creditors over the next five years:
- If you can pay at least $13,650 ($227.50 per month), you can't file for Chapter 7.
- If you can pay at least $8,175 ( about $136.25 per month)
- If your disposable income is less than $136.25 per month, you can file for Chapter 7.