Chapter 7 Bankruptcy Means Test

Answer:

Another common Chapter 7 bankruptcy question we get from our South Jersey clients is, “What exactly is the means test?” When filing for a Chapter 7 bankruptcy, the means test is a comparison of your annual household income against the number of people residing in your home. If it is over a certain threshold, you will not qualify for a Chapter 7 bankruptcy. You may still qualify, however, for a Chapter 13 bankruptcy. If you have any questions about whether a Chapter 7 or a Chapter 13 bankruptcy is better suited for you, or where you fall in the means test, please feel free to contact our office.