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California Bankruptcy Means Test If you would like to file a Chapter 7 bankruptcy you must pass the California means test. The test only applies to higher income filers which means that if your income is below the California median for your household size you are exempt from the test and may file a Chapter 7.
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This is an Official Bankruptcy Form. Official Bankruptcy Forms are approved by the Judicial Conference and must be used under Bankruptcy Rule 9009.
Here you'll get an overview of the means test, including the basic steps. if not, you must do some more calculations to figure out whether you're eligible.
Have you heard about means testing in bankruptcy?. First, a calculation is done of your gross annual household income.. These median income figures are based on census data, which is then adjusted periodically for inflation (or deflation,
Chapter 7 Means Test. For two people, it is $52,174. For a family of three people, it is $58,310 and for four people, it is $73,288. Using those figures, we can determine that if a single filer’s income is less than $44,434 in Kansas and $41,594 in Missouri, you would qualify for a Chapter 7 bankruptcy.
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Very little in bankruptcy causes more confusion and anxiety than the Chapter 7 means test. Many people assume that the means test will automatically force them into a Chapter 13 payment plan or prevent them from filing for bankruptcy at all. Although these assumptions are not true in most cases, the confusion is understandable.