What is a bankruptcy "means test?"
A "means test" in a bankruptcy proceeding is one of the factors used to determine whether an individual debtor is eligible to file for bankruptcy under Chapter 7. The means test looks at the debtor's aggregate current monthly income (looked at over a number of years). If the net of that income, disregarding certain allowed expenses, is above the current income limit, then the debtor may not be eligible for filing under Chapter 7 unless he or she can prove special circumstances which would justify additional expenses or adjustments of current monthly income beyond those income/expense limits.
Additional Chapter 7 Personal Bankruptcy Articles
- I want to know if I qualify for bankruptcy – what are the eligibility requirements?
- Can I file for bankruptcy every few years?
- What are the Basics of a Chapter 7 Bankruptcy?
- What is a Chapter 7 bankruptcy?
- What is the Difference Between a Chapter 7 and a Chapter 13 Bankruptcy?
- What is a bankruptcy trustee and who is the United States trustee?
- How to approach a free consultation with a bankruptcy attorney
- Will all of my debts be discharged in a Chapter 7 bankruptcy?
- Will Filing for Chapter 7 Bankruptcy Get Rid of All My Debts?
- Can't I just transfer my assets to a friend or a Living Trust before I file for bankruptcy?
- How Have Bankruptcy Laws Recently Changed?
- If I file for Chapter 7 bankruptcy can I keep some of my property?
- Will Filing for Bankruptcy Stop the Bill Collectors?
- Will bankruptcy cause me to lose my safe deposit box?
- Some Debts May Remain After Bankruptcy
- What Is Fraudulent Conveyance and How Can I Avoid it?