Qualifying for Bankruptcy through the Means Test

Discuss Your Options with a Seasoned Worcester Bankruptcy Attorney

If you wish to file for bankruptcy under Chapter 7, you must first qualify. Generally, if your income is less than the median income for a Massachusetts household of your size, you will automatically be allowed to file.

What Is the Massachusetts Bankruptcy Means Test?

This median income is determined by the U. S. Census Bureau. If your income falls above the median, you will then be required to take the second part of the qualification test, called the “means test.”

At Morrison & Associates, I have handled countless Chapter 7 bankruptcy filings for clients in and around Worcester, as well as across the state.

As your Worcester bankruptcy lawyer, you can rely on me to help you determine your eligibility and assist you in taking all of the necessary procedural steps to complete your filing.

My extensive experience in this field of law has given me substantial professional skill and insight into all aspects of the bankruptcy process, from qualifying to handling related debt relief issues such as:

• Credit problems
• Home foreclosures
• Bankruptcy alternatives

Chapter 7 Means Test Income Limits

If your income fell below the median as of April 1, 2018, you are eligible to file for bankruptcy in Massachusetts.

For example, the median monthly income as of that date is:

• $5,222 for a household of one
• $6,682 for a household of two
• $8,230 for a household of three
• $10,322 for a household of four

If your income was above the median for your household, you will need to continue with the means test in order to qualify for a Chapter 7 bankruptcy. This part of the test deducts admissible expenses from your income.

Generally, if the income left over after the deduction would allow you to pay 25 percent of your unsecured debt over the course of a year or a legally-specified amount over the course of five years, you might not qualify for bankruptcy. Other alternatives, such as filing for Chapter 13, must then be explored.

How Our Firm Can Help

The means test is a very complicated formula. Because of this, it is vital that you take advantage of my vast experience as a Worcester bankruptcy lawyer to ensure that the formula is applied accurately and that all allowable expenses are used.