Quick, simple and convenient online calculators. Bankruptcy median income test, days between calculator, holiday calculator and more. Welcome to the free bankruptcy means test site. In a moment you will perform an online test right here to see if you qualify for a chapter 7 discharge of your debts. If you pass our free means test, then you can be reasonably sure you qualify to file chapter 7 bankruptcy and to have your debts discharged. The means test makes filing for bankruptcy a little more difficult. But the good news is that most people pass the means test and get their Chapter 7 bankruptcy approved. Be assured that you’ll have plenty of company in seeking debt relief through bankruptcy —, Americans filed for non-business Chapter 7 bankruptcy in , according.
You can earn significant monthly income and still qualify for Chapter 7 bankruptcy if you have a lot of expenses, such as a high mortgage payment. This article shows you simple ways to determine whether you can pass the means test -- and, therefore, use Chapter 7 -- if you were to file for bankruptcy. The means test was designed to limit the use of Chapter 7 bankruptcy to those who truly can't pay their debts. It does this by deducting specific monthly expenses from your "current monthly income" your average income over the six calendar months before you file for bankruptcy to arrive at your monthly "disposable income.
To take the means test, you must first determine whether your income is more or less than the median income in your state.
If you earn more than the median, you must figure out whether you would have enough left over, after subtracting certain expenses, to repay some of your debt. The first step is simple: If your current monthly income is less than the median income for a household of your size in for your state, you pass. You're done. You do not need to complete the rest of the means test.
You can file for Chapter 7. For those whose household income exceeds the state median, the means test computations get significantly more complex. Their full service bankruptcy may cost more but it is worth it. For more help in choosing an online bankruptcy preparer site, visit the leading bankruptcy preparer review site.
Our means test calculations are offered without warranty. Calculations performed on this site are optimized and may not accurately reflect your unique financial situation.
It is not a promise of suitability for your personal situation. We are not lawyers and as such we do not give legal advice. If you need legal advice, consult a lawyer. Buckle up and get ready. Begin test. There will undoubtedly be litigation on this subject. The official form seems to suggest that the issue is whether the person is part of the household and is a dependent.
That is, you can't include a roommate who is not your dependent in your household size, yet you may have to include the portion of their income that contributes to the overall income of the household.
See the help topic on that subject. This can be an issue for same-sex couples who cannot legally marry. Keep in mind that the Trustee tends to protect creditor interests, so a debtor's bankruptcy attorney may not agree with every one of these positions.
That said, if you can easily pass the means test under the trustee's relatively stingy interpretation of the rules, all the better. The U. At least one site on the web has addressed this issue. Old Form Line 8 New Form 22A-1, Line 4 , Any amounts paid by another person or entity, on a regular basis, for the household expenses of the debtor or the debtor's dependents, including child or spousal support.
It is an essential first step, and for most people, that is that. They are clear to file. However, in some cases, a bankruptcy judge may rule that case should be dismissed becuase to the "totality of the circumstances" under b 3. Iowa And, while the means test income analysis looks backward, a court can use b 3 to look forward.
In re Pak , B. Yes, a judge can allow you to file for Chapter 7 bankruptcy even if you fail the means test, but only you are able able to show "special circumstances.
Some examples of possible "special circumstances" are job loss or pay cut, a serious medical condition, or unusually high child care expenses. You must be able to produce proof of your expenses and that your expenses are reasonable -- and that you have no reasonable alternative.
This is a technical term used in bankruptcy law. These include. The full list of the nine types of priority debt is found in section a of the bankruptcy code. For ease of reference, the USTP positions are listed in summary fashion without citation to legal authority. The referenced lines are those on the Form B A. Unless a circuit court has decided an issue to the contrary, United States Trustees should, absent unusual circumstances, maintain these positions when interpreting section b. If you don't own the book, you can still use this site and the free means test calculator.
Albin Renauer, the operator of LegalConsumer. How to File for Chapter 7 Bankruptcy provides clear, user-friendly information and all the forms you need to get through the entire bankruptcy process. The book and the local resources you'll find on LegalConsumer. The book is designed to work with LegalConsumer.
The book covers the entire process, and gives you the line-by-line instructions you need to fill out the required Chapter 7 bankruptcy forms. Meanwhile, this website gives you access to the latest local court information and county standards for the means test calculations that you must do to file a sucessful bankruptcy petition.
It's important to learn what bankruptcy cannot do. You don't want to go to all the trouble of filing bankruptcy only to find out that the it won't help solve your particular problem or kind of debt.
The book clearly explains what doesn't bankruptc yan and cannot do. If you do decide Chapter 7 bankruptcy is the right option, you'll learn how you can use it to:.
If you think you want to file for bankruptcy but aren't sure you can afford to hire an attorney, How to File for Chapter 7 Bankruptcy will help you learn what it takes to complete your bankruptcy petition on your own and complete the bankruptcy process. How to File for Chapter 7 Bankruptcy doe s not cover business bankruptcies, farm reorganizations Chapter 12 or individual repayment plans Chapter Chapter 13 Bankruptcy.
If you're considering Chapter 13 bankruptcy, which lets you wipe out some of your debt and pay back the rest over time, use this plain-English guide to decide whether or not it's right for you. Nolo's Chapter 13 Bankruptcy breaks down the Chapter 13 process and provides clear explanations of the law.
First, you can:. This newest edition includes new information on hiring and working with a lawyer, recent court rulings that interpret the federal bankruptcy laws. You'll also find the atest bankruptcy exemption laws in your state, which determine what copy you can keep, and recent IRS standard expense amounts, which affect Chapter 13 plan payments.
If you own your own business and are considering Chapter 7 bankruptcy, see Nolo's Bankruptcy for Small Business Owners. The New Bankruptcy. If you're feeling overwhelmed by debt, you may be considering bankruptcy. But is filing bankruptcy the right solution for you and your family?
Find out with this plain-English book. Find out:. The latest edition of The New Bankruptcy includes updated lists of assets you can keep exemptions when you file bankruptcy, plus the latest rules handed down by the Supreme Court as it interprets the federal bankruptcy law. Empowering Consumers Since The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site.
The sponsored attorney advertisements on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service. Toggle navigation. Change Location: Punxsutawney, PA Toggle navigation PA Bankruptcy. Department of Justice for cases filed on or after May 1, Note. NOTE: You must allow cookies for the calculator to work. How Long Does This Take? Household Size: When is a family of 3 not a family of 3?
If I fail the Means Test, can a judge allow me to file anyway? What are "priority claims"? What is the means test? Use this calculator find out where you stand. The Formula The law now uses a standard mathematical formula to determine whether you can file for Chapter 7 -- or, to put it in legal terms, whether filing for Chapter 7 would be an 'abuse' of the bankruptcy system.
Do I need to complete the means test? How long does this take? Is it private? Garbage in, garbage out If you don't put in the correct numbers in the correct blanks, this calculator won't give you an accurate result. If married and two different households, residence is where most family members reside. If no plurality of family members are in any one state, use state of spouse with highest income.
However, if an individual is counted as a family member for median income purposes, that individual's income should be included as income on Part II of Form 22A. Includes payments regardless of written agreement with contributor. Includes payments from roommate, partner, parent, or relative, regardless of whether living with debtor. Includes payments made directly to creditors on behalf of debtor, e.
Does not include payments from non-filing spouse which are already included as income in Column B. Contributions of roommates or domestic partners to household income At least one site on the web has addressed this issue. Includes payments made monthly, quarterly, or annually. Yes, you can still be barred from filing Chapter 7 bankruptcy.
These include past due debts for child and spousal support, most unpaid taxes, and wages, salaries or commissions you owe to employees and contributions you owe to an employee benefit fund. Purpose of debt is judged at the time the debt was incurred. Home mortgages are typically consumer debt. Most tax debts are not typically consumer debt. Exclusion applies after the minimum 90 day period of service, and for days after the service ends. Exclusion applies only to cases filed between December 19, and December 18, , unless extended by Congress.
Line 2, Filing Status. No option for legally separated but filing joint case; joint cases generally should be treated as a single household for means test purposes. May be asserted as special circumstances to rebut the presumption of abuse under section b 2 B.