What Is the Bankruptcy Means Test and How Does It Work?

Before you can file Chapter 7 bankruptcy, you generally are required to pass the means test. Stated simply, to pass the means test, you must show that your monthly income is less than the median income for households of the same size or, if your income is greater than the median income, that you have enough expenses to still qualify. Many people have misconceptions about the means test, and put off filing for bankruptcy as a result. At the Law Office of Robert Braverman, LLC, our attorney will do more than just help you complete the bankruptcy means test. His in-depth knowledge of the law may enable you to qualify to file Chapter 7 bankruptcy or find another debt relief option that achieves your most important goals.

Call 856-254-2196 to learn more about your debt relief options in a free consultation.

How Do You Find Out if You Pass the Means Test?

Your first step is to calculate your average monthly income over the past six months. You then compare this to households of the same size in your state. The most recent numbers for annual household incomes are below.

New Jersey Pennsylvania
One person — $61,243One person — $48,982
Two people — $71,994Two people — $57,870
Three people — $90,863Three people — $72,866
Four people — $107,452Four people — $85,765

Add $8,100 for each additional person in a household.

If your income falls below these levels, then you pass the means test. Even if it does not, you may still be able to pass the means test and file Chapter 7 bankruptcy. The next step will be to calculate and add up your expenses. After this, if your income falls below a certain level, you can file for Chapter 7 bankruptcy.

We encourage you to get in touch with us if you believe your income is too high to file Chapter 7 bankruptcy — or even if another lawyer has told you Chapter 13 is your only option. We will carefully assess your overall financial situation, asking the right questions and accounting for all loans, payment and other obligations. We are also adept at creating Chapter 13 plans that eliminate substantial debt and require manageable monthly payments.

Turn to a Proven Bankruptcy Attorney — Call 856-254-2196

We are prepared to answer all questions about the bankruptcy means test in New Jersey and Pennsylvania. You can sit down with Mr. Braverman and explain your basic concerns, and he will guide you through each step, applying decades of focused, active experience helping people resolve all types of debt problems.

Please do not rely on friends or inexperienced lawyers for counsel on your range of debt relief options. Request a free initial consultation with Robert Braverman at any of our firm's four full-service offices — Cherry Hill and Willingboro in New Jersey, and Philadelphia City Center or Northeast Philadelphia.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.