The bankruptcy means test is a significant factor in determining who can file for debt forgiveness through Chapter 7 bankruptcy. See http://www.csmonitor.com/Business/Saving-Money/2016/0718/Why-the-bankruptcy-means-test-matters. It takes into account your income, expenses and family size as well as the state you live in to determine whether you can eliminate the debt or whether you have enough disposable income to repay some or all of your debts. Regarding the relevance of the state you live in, as an example, a family of four residing in Northeast Philadelphia Pennsylvania will need to have less income than a family of four residing in Pennsauken New Jersey because the statewide income is less in Pennsylvania then in New Jersey.
Bankruptcy is an option for individuals that cannot pay their credit card debt or medical bills. Bankruptcy gives individuals more time to pay their bills. It also stops collection agencies from contacting creditors about their debts.
New Jersey Senator Bob Menendez has joined several other senators in sponsoring federal legislation aimed at getting medical debt off the shoulders of hard-working Americans. At issue is the fact that medical debt continues to plague as many as 72 million individuals across the country.