The “Means Test” is imposed by the U.S. Bankruptcy Code to help debtors, trustees and the Courts determine whether a person can qualify to file under Chapter 7, or whether the filing would be abusive. Chapter 7 is a desirable chapter for filing because it provides the most relief available: most debts are discharged, payments are not required to unsecured debts, and the debtor will likely to keep most of his or her assets.
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 for the U.S. Department of Justice Means Test Figures.
