Means Test2018-03-26T17:37:22+00:00
means test

Chapter 7 “Means Test”

  • Dismissal of Case for “Abuse” – abusive Chapter 7 cases are subject to dismissal
  • Failure to pass the “means test” – presumption that case is abusive
  • The “means test” involves a computational test – (involving income and expenses) to determine whether a person’s case is presumed to be abusive.
  • Income used in the means test – is based on the six month period prior to the month of the filing of the bankruptcy case.
  • Expenses used in the means test – are based on IRS collection standards and actual expenses. The application of the “means test” is often quite complex.
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