What Is a Bankruptcy Means Test?

Back in 2005, changes were made to the bankruptcy process to prevent abuse and fraud of Chapter 7 bankruptcy. One of those measures is called the means test. The means test is a series of criteria that narrows down those who qualify for Chapter 7 bankruptcy. If you pass the means test, then you do not have the “means” or any other way to pay off your debt.

Back in 2005, changes were made to the bankruptcy process to prevent abuse and fraud of Chapter 7 bankruptcy. One of those measures is called the means test. The means test is a series of criteria that narrows down those who qualify for Chapter 7 bankruptcy. If you pass the means test, then you do not have the “means” or any other way to pay off your debt.

Back in 2005, changes were made to the bankruptcy process to prevent the abuse and fraud of Chapter 7 bankruptcy. One of those measures is called the means test. The means test is a series of criteria that narrows down those who qualify for Chapter 7 bankruptcy. If you pass the means test, then you do not have the “means” or any other way to pay off your debt.

Prior to the change, consumers were able to choose for themselves whether they filed under Chapter 7 or Chapter 13. Many of those consumers chose Chapter 7 because in Chapter 7, you do not have to reconcile your debt as you do in Chapter 13.

The means test is composed of two questions:

Is your household income less than the median income of a household of your size in Florida? To find out, look up the median income for your state. If so, you qualify for Chapter 7 in your state. If not, answer the next question.
Do you have enough disposable income to pay your creditors? If not, you qualify for Chapter 7. If so, you don’t and you will either have to file a Chapter 11 or Chapter 13.

Please keep in mind that every case is different, and the means test is very complicated. If you are thinking of filing bankruptcy and would like to schedule a no-cost consultation, please contact the bankruptcy attorneys at LSS Law. by completing the form on this website or calling us at 954-466-0541.

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       If you are considering filling for bankruptcy , this would be the firm to use! Jonathan is very experienced as well as all of his team, Specially Anne ! They made the process very easy and my case was approved due to their help and expertise! I am very grateful to have had them representing me !
  
 
    
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      Jonathan and Anne were wonderful and I thank you for helping me with my new beginning.
  
 
    
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      I had a wonderful experience with Jonathan Leiderman at LSS Law. Not only is he well experienced, but he is also very patient and supportive throughout a tough time. I appreciate that he takes such a hands-on approach where there is no going through office staff and waiting for a reply. He deals with you one-on-one, and he is your single point of contact. He takes time to answer all your questions and takes the time to ensure that you understand every aspect. He is highly communicative and does so in a timely manner.... I always got a response within minutes or hours, at the latest 24 hours. I don't know how he does it all, but I am grateful that I had him to represent me! I highly recommend Jonathan and LSS Law!
  
 
    
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      Jonathan Leiderman did a phenomenal job representing me and taking on my case.  His knowledge, experience, and diligence quickly became apparent through his work product and the correspondence that he maintained with me.  Furthermore, he was always quick to answer my questions and put my mind at ease during the entire process.  Jonathan and LSS Law will forever have my gratitude and I highly recommend their services to anyone who is in need of them.
  
 
    
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If you are considering filling for bankruptcy , this would be the firm to use! Jonathan is very experienced as well as all of his team, Specially Anne ! They made the process very easy and my case was approved due to their help and expertise! I am very grateful to have had them representing me !

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I highly recommend LSS Law. No complaints. Jonathan, Ann, and Maria were very professional and clear in all our communications, which makes everything really easy.

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What Is a Bankruptcy Means Test?

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