What is the bankruptcy means test?
The means test is a method of determining one’s eligibility status for filing Chapter 7 bankruptcy. It was established by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Under this act, filers with monthly incomes below the state’s median income are automatically eligible to continue with the filing process. Those who do not meet this requirement, however, must take the means test, which takes a closer look at the filer’s net monthly income.
Contact Birmingham bankruptcy lawyer Paula Greenway today at (205) 324-4000 to discuss any questions you may have regarding the means test.