Question 1

What is the means test for bankruptcy?

Accepted Answer

The means test is a formula that determines whether you qualify to file Chapter 7 bankruptcy. It compares your household income to the median income for your state and family size. If your income is below the median, you qualify. If above, you must show that your disposable income after allowed expenses is too low to repay creditors.

Question 2

Can I take the means test online?

Accepted Answer

You can calculate the means test online using free calculators that walk you through the same form the bankruptcy court uses. You will need 6 months of income records, your household size, and information about your monthly expenses and debts. The calculation takes about 15-20 minutes with your documents ready.

Question 3

What expenses can I deduct on the means test?

Accepted Answer

You can deduct housing costs, transportation, food, healthcare, childcare, taxes, mandatory retirement contributions, secured debt payments (mortgage, car loans), child support, alimony, and education expenses for dependent children. The means test uses IRS National and Local Standards for most expense categories.

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