Contact Us

Name:*

Email:*

Phone:*

Your Legal Issue:

Means Test

The Means-Test Step One - What is Your Income?

The "Current Monthly Income" is a monthly average of all your income over the past six months. For example, if you live by yourself and make $1,900.00 per month gross income, and the median income for someone in your state living alone is $3,000.00 per month gross, then you pass the means test, and you are below the median income therefore, you qualify to file a chapter 7. If your income is above the median, then you have to move on to Step Two:

The Means Test Step Two - Deduct Allowable Expenses

Step Two: If you are above the median income you take "Current Monthly Income" from Step One, and then subtract your monthly expenses. However, some monthly expenses are already in the formula for you. For example, if you live in Shreveport, the government already says what "reasonable" household expenses should be for a person living in Shreveport. Once you have deduced all the allowable expenses, you see if there is money left over to pay to unsecured creditors.  If there is money left over, your Chapter 13 might have to be .........

Error Executing Database Query.

Copyright 2017, All rights reserved.

Website by Lunabyte, Inc.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. The Cook Law Firm, APLC is not engaged in rendering legal or other professional services by posting said material.