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The Bankruptcy Means Test

Are You Eligible for Chapter 7 Bankruptcy?

The bankruptcy means test determines whether your income is low enough to file for Chapter 7 bankruptcy. It was part of the bankruptcy laws passed in 2005, designed to limit the number of Chapter 7 bankruptcies, and steer more people into Chapter 13 bankruptcy, in which they must repay some or all of their debt over a period of time.

If you have questions about the means test or qualifying for Chapter 7 bankruptcy, the attorneys at Bankruptcy Law Group, PC, are here to help. We have extensive experience helping people throughout California and Nevada with bankruptcy and debt relief issues.

Contact us today to discuss your debt relief options. Our California and Nevada bankruptcy lawyers are here to help.

The Chapter 7 Means Test

The first stage in the means test is determining if your income is greater or less than the median monthly income for a household of your size. If it is less, you qualify for Chapter 7 bankruptcy and do not have to complete the rest of the means test.

If your income is greater than the median, you still may qualify, but the process becomes more complex. The means test takes into consideration your monthly income, expenses and other factors to determine what your disposable income is. If your disposable income falls above a certain level, then you will not qualify for Chapter 7 bankruptcy. If you choose, you can still file for Chapter 13 bankruptcy, in which you pay off some or all of your debt over a three to five year period.

It is important to have an experienced attorney advise you on the bankruptcy means test. When you take the test could affect your bankruptcy qualification status. For instance, if you received a bonus check from work six months ago, you might be ineligible to file for Chapter 7 now, but eligible in two months.

Our lawyers are well-versed in bankruptcy law and the means test and can guide you through the process, and give you the best possible chance of achieving your debt relief goals.

Schedule Your Free Consultation

If you need help with the bankruptcy process, we are here for you. Contact us online today to schedule a free debt relief consultation with one of our experienced California bankruptcy attorneys. We hold regular office hours and are available evenings and weekends by appointment. We have law offices  in Sacramento and Fairfield, California as well as Reno, Nevada.