Bankruptcy: What is the Means Test? Baltimore Bankruptcy Lawyer

Posted about 2 years ago. 1 helpful vote

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Thoughts from a Maryland Bankruptcy Attorney

http://www.drescherlaw.com

The "Means Test" is a test under the United States Bankruptcy Code to help debtors determine whether they can qualify to file under Chapter 7. Chapter 7 is a desirable chapter because it provides the most relief available under federal bankruptcy laws: most debts are discharged, no payments are required to unsecured debts, and the debtor is likely to keep most of his or her property.

Under the means test, the debtor compares their gross annual income against the state's median income for the number of people in the debtor's family. If the gross annual income is less than the applicable median income, the debtor will qualify for Chapter 7. The specific term is there is no "presumption of abuse."

To see the median income for your state click here:

http://www.justice.gov/ust/eo/bapcpa/20120501/bci\_data/median\_income\_table.htm

Thoughts from a Baltimore Bankruptcy Lawyer

Ronald J. Drescher

Drescher & Associates, P.A

4 Reservoir Circle

Suite 107

Baltimore, MD 21208

(410) 484-9000

Fax (410) 484-8120

Rondrescher@Drescherlaw.com

http://www.Drescherlaw.com

FaceTime rondrescher@mac.com

Skype ron.drescher

Practicing in Maryland, Delaware, Virginia, Pennsylvania

Additional Resources

http://www.justice.gov/ust/eo/bapcpa/20120501/bci_data/median_income_table.htm

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