Frequently Asked Questions
What factors are considered in the means test?
The means test takes into account the debtor's current monthly income, which includes all sources of income such as wages, selfemployment income, rental income, and government benefits. It also considers the debtor's allowable expenses, which are based on national and local standards.
How does the means test affect bankruptcy eligibility?
The means test is used to determine if an individual's income is below the median income for their state. If their income is below the median, they automatically qualify for Chapter 7 bankruptcy. If their income is above the median, further calculations are done to determine if they have enough disposable income to repay their debts.
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