The Bankruptcy Means Test
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The Bankruptcy Means Test is meant to keep high income earners from filing for Bankruptcy. Fortunately most people still qualify for Bankruptcy and can pass the means test even if their income is relatively high.
Means Test Calculators
There are a bunch of online calculators that can give you a general idea of what the means test is but unless you actually consult with an attorney you will not know for sure. Thus, be wary of online means test calculators. Even if you make too much money, you may still qualify for Bankruptcy.
Passing the Means Test
If you have high income, having secured debt helps. Typically you will need a mortgage payment and a car payment. Other expenses such as regular medical bills can play a large role in means test calculations. A full summary of all of your income and expenses for the last six months is needed to do a means test calculation.
Six Months of Pay Stubs
The income for bankruptcy purposes is measured by the last six months. Thus, the last six months of paycheck stubs are necessary to calculate your income for means test purposes
Household Income
The income for the entire household is calculated for means test purposes. Thus, if you are married but your spouse is not filing for Bankruptcy, their income is still required and used for calculation.
Do you Qualify?
We will run the means test for our clients to ensure that you qualify for Bankruptcy. If you are considering Bankruptcy, contact us today for a free consultation.