Pass the Means Test by Filing Bankruptcy in 2018
The timing of your bankruptcy filing can determine whether you qualify for quick Chapter 7 vs. paying into a Chapter 13 plan for 3-5 years.
A Simple Example of Passing the Means Test
We show by example how the means test works, when a person qualifies for a Chapter 7 case simply by income.
The Chapter 7 Means Test
You have to pass the means test to qualify for a Chapter 7 case. It's often an easy test to pass but one with some crucial twists and turns.
What is Considered “Income” for the Chapter 7 “Means Test”
"Income" is not what you think it is--it's much broader than usual and fixates on the 6 full calendar months before your bankruptcy filing.
The Military Exemptions from the Chapter 7 “Means Test”
You qualify for Chapter 7 without having to pass the "means test" if you fit within these very specific military-related exemptions.
The Business Debt Exemption from the Chapter 7 “Means Test”
If your debts are not "primarily consumer debts" then you may be able to qualify for Chapter 7 bankruptcy much more easily.
Larger Families More Likely to Qualify for Shorter Chapter 13 Cases
Soon families of larger than 4 people can have a bit more income and qualify for a 3-year Chapter 13 payment plan instead of a 5-year one.