Jump to navigation Jump to content

What is a Means Test?

Blog Category:
Comments (0)
What is a Means Test?
A means test is an essential portion of the bankruptcy petition that must be filed with the rest of the schedules that comprise a bankruptcy petition.  In a Chapter 7, the official name for the means test is Form 22A:  Statement of Current Monthly Income/Means Test.  In a Chapter 13 bankruptcy, the official name is Form 22C:  Current Monthly Income/Disposable Income.  The means test is what determines whether a person is eligible for file a Chapter 7 bankruptcy.  In a Chapter 13, the means test determines how much a person will be back to their unsecured creditors, if any.
In order to complete the means test, the first step is entering all forms of income for the debtor for the six months prior to the month the bankruptcy is filed.  Therefore, if a person is going to be filing a bankruptcy in May, the debtor's income should be entered for the beginning of November through the end of April.  Applicable income includes child support, employee wages, self-employment income, income from rental properties, food stamps, pension income, alimony, etc.  The only income that does not apply in the means test is Social Security income. 
If the person is under median based on their household size, they are eligible to file a Chapter 7.  If they are over median, additional information will need to be entered, such as mortgage payments, car loans, taxes, mandatory wage deductions, mandatory 401(k) deductions, court-ordered alimony or child support payments, child care, healthcare expenses, health and term life insurance premiums, telecommunication expenses, etc.  There is an automatic deduction based on household size for utilities, food, etc.  Once those specific expenses have been factored, if the DMI (disposable monthly income) is negative, the debtor will still be eligible to file a Chapter 7 bankruptcy based on those expenses.  If the DMI is positive, the debtor will be required to file a Chapter 13 bankruptcy.  The DMI amount will determine what the debtor will be required to pay each month to their unsecured creditors for the next 60 months.  The remainder will be discharged.  When filing a Chapter 13 bankruptcy, debtors will also get a creditor for any 401(k) deductions, regardless of whether they are mandatory.  If you would like more information about the means test, contact a St. Louis or St. Charles bankruptcy attorney.

Category: Bankruptcy

There are no comments.

Post a comment

Post a Comment to "What is a Means Test?"

To reply to this message, enter your reply in the box labeled "Message", hit "Post Message."


Email:* (will not be published)


Notify me of follow-up comments via email.

For Current Clients

Our Locations

St. Charles Office

1861 Sherman Drive
St Charles, MO 63303
Phone: 636-916-5400

At Hwy 94 and Hwy 70.

Get Directions | See Detail

St. Louis Office

3470 Hampton Ave, Suite 101
St. Louis, MO 63109
Phone: 314-353-0834

Close to the corner of Hampton Ave and Chippewa. By appointment only.

Get Directions | See Detail

South & Jefferson County office

7321 S. Lindbergh Ave., Suite 222
St. Louis, MO 63125
Phone: 636-916-5400

Across the South County Mall.

Get Directions | See Detail

Florissant Office (North County)

1281 Graham Rd, Suite 300
Florissant, MO 63031
Phone: 314-921-1880

At North Hanley and Hwy 270.

Get Directions | See Detail

Belleville Office (St. Clair county)

2 Park Place Professional Centre
Belleville, Illinois 62226
Phone: 618-977-9560

On Hwy 159, next to Schnucks.

Get Directions

Granite City Office (Madison County)

3600 Nameoki Rd, Suite 201
Granite City, IL 62040
Phone: 618-977-9560

Across Shop'n Save, by appointment only.

Get Directions | See Detail

Follow Us On