What is the means test, and, if I fail the means test, can I still file for Chapter 7?
The means test is an addition to the Bankruptcy process and enacted by the Bankruptcy Abuse Prevention and Consumer Protection Act which became law in October, 2005. The means test is a complex calculation of your income and expenses that determines whether or not your case is presumed to be an abuse of Chapter 7. The means test takes an average of your income over the six months prior to the filing of your case, then pro-rates it to a yearly amount and compares this amount with the median yearly income for the same number of household as based on IRS census information. If your income is below the median income, the means test is not applicable at all. If your income is above the median income, then you are subject to means testing to determine whether your case is presumed to be an abuse of Chapter 7. Once it is determined that your income over the 6 months prior to the case being filed with the court is above the median income for the same number of household, this income is then re
