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The Means Test

If your household income is above the median for your state and household size, you may still be able to file for Chapter 7 bankruptcy if you pass what’s called the means test. You’ll have to show that your expenses and allowable deductions leave you with no money to repay some of your unsecured debts. (An unsecured debt is a debt that isn’t attached to particular collateral—for example, credit card debt.)

You can take the means test for free at www.legalconsumer.com by entering some basic information about your income and expenses. If you pass, you can file for Chapter 7 bankruptcy. If you don’t pass, that means the court considers you to have enough money to pay back at least some of your debts, perhaps by filing for Chapter 13 bankruptcy.