The “Means Test” — How does it affect me?

Most people learn after some research that the bankruptcy laws changed in 2005. One of the biggest changes to come from this was the means test, a formula that was theoretically designed to make bankruptcy filing more equal. Whether or not it achieved this goal is outside the scope here. However, whether you can file under the means test is not as simple as looking at your average income for the last six months.

Even if you have taken a so-called “means test” online, it is highly unlikely that the result was accurate. The average income number is not what you earn, but your earnings after a series of deductions. We can help you make the determination whether chapter 7 or chapter 13 is the best choice for your specific circumstances.