The bankruptcy means test uses the average gross monthly income derived from all different sources for 6 full months before you file your bankruptcy for the first part of the means test. This can be found in the bankruptcy form titled Chapter 7 Statement of Your Current Monthly Income.
Below is the exact language for the calculator and for gross income from the bankruptcy form:
The statement above to calculate average monthly income can be confusing. Which month do you use and how do you calculate to make sure that you take the average. As such, we built a tool that a bankruptcy attorney recommends to help you estimate how much your average monthly income is for a 6 month period.
Now that you have your average income amount, you can now plug that number in the bankruptcy means test calculator below to estimate whether you pass the bankruptcy means test. If your results are above the median, you may want to look at the third step.
Your income may be slightly above the median by up to $20,000. There may be a chance to still qualify for a Chapter 7 bankruptcy when your income is above the median amount for your state and household size. There are two forms that can be used here, and it's often referred to as Part 2 of the Means Test: 1) Statement of Exemption from Presumption of Abuse Under §707(b)(2) 2) Chapter 7 Means Test Calculation.
Thankfully, the calculations are form-based as well. We wanted to simplify the process, so we also built a Chapter 7 Above Median Calculator which you can access below.
At this point, you may want to research alternative options or still have a consultation with a bankruptcy attorney as there are certain things about each bankruptcy district that is unique. You may also be interested to review such options as debt payoff planning, debt settlement or debt management.
If you are interested in any of these options, please contact us if you have any questions whatsoever. We specialize in finding the best programs for each of the different services.