Get Means Test Bformb - Uscourts

Calculation of Current Monthly Income: To begin the means test, debtors calculate their current monthly income, which equates to twice the gross income earned in the six months leading up to the bankruptcy filing.

You can earn a high income and still pass the means test if you have substantial expenses like a hefty mortgage, multiple car payments, taxes, childcare, health care, or care of an elderly or disabled person. However, if your disposable income is more than a certain sum, you will not be able to file.

The full Means Test compares the debtor's income to their expenses to determine whether they should benefit from Chapter 7 relief based on their “disposable income.” Applying the Means Test involves deducting all household expenses from the debtor's gross income, including housing costs, utilities, medical expenses, ...

The means test is calculated by comparing the debtor's average income for the past six months (current monthly income), annualized, to the median income for households of the same size in the debtor's state of residence.

If it changed shortly after your case was filed, wait for the creditors' meeting and let the trustee know during the meeting that your income has changed. Depending on how much it changed, they may say don't worry about it or request that you file updated forms.

The means test compares a debtor's income for the previous six months to what he or she owes on debts. If a person has enough money coming in to gradually pay down debts, the bankruptcy judge is unlikely to allow a Chapter 7 discharge.

Most people pass the means test simply because their “current monthly income” is low enough. If your “current monthly income” is no more than the specific dollar amount that is applicable to your state and size of family, then you do not need to go through the much more complicated expenses side of the test.

You'll need to fill out your gross wages, which you should be able to find on your paystubs from the previous six months. Make sure you use the gross amount (before taxes and deductions). You'll also need to list any other types of income you receive.