What is the Means Test Calculation required by the Bankruptcy Code?
In order to qualify for a Bankruptcy, the Bankruptcy Code requires that you complete a Statement of Current Monthly Income and Means Test Calculation. These are mathematical calculations designed to ensure that you are eligible for the Bankruptcy. Essentially, the Statement of Current Monthly Income and Means Test Calculation will determine your disposable monthly income and this sum will be used by the Bankruptcy Court to determine how much you must repay your unsecured creditors during your Chapter 13 Plan. In a Chapter 13 Bankruptcy case, you will then have to submit a Chapter 13 Plan to the Court to prove to the Court that you can maintain your assets and pay your creditors over a three to five year period (even at a reduced rate). Then, a “Confirmation Hearing” before the judge will be scheduled. At this hearing, the Bankruptcy Trustee and the Court will either confirm your Plan, recommend changes to your Plan, or dismiss your case. The Confirmation Hearing usually lasts from five
