The Means Test

The bankruptcy ‘Means Test’ is a way for the Court to compare your income and expenses with the averages for the number of people in a household and the median income in your region for that family size. If you are above median income there is a rebuttable presumption that you should be in a Ch.13 payment plan. The rebuttable factor is that you may have non-dischargeable debts (such as child support, taxes, etc.) that may actually leave you with no disposable income and thus eligible for a Ch.7 “Fresh Start” discharge.

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