Bankruptcy Tip of the Day: Don't Try to Do Means Testing Yourself

The bankruptcy Means Test was implemented to determine if a debtor filing bankruptcy has income low enough to file chapter 7 bankruptcy.  It's simple.  You take the median income of the state and you are either above or below.  Wrong.  The means test is pretty nuanced.  It is not a simple formula and a lot more goes into it than a high-low calculation.  We often see clients with significant incomes qualify for chapter 7 after carefully completing the means test with all available information.  Most of the information on the internet discourages clients from seeking the help of a bankruptcy attorney to make this determination.  For a fee, most bankruptcy attorneys will do a complete means test and talk to you about your options before committing to a bankruptcy filing.  If you decide to file, our office will credit the amount you've paid to your overall fees.