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The Means Test |
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| Means Test Calculator |
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| The Means Test Calculator provided above uses median family income figures for each state (for filings prior to March 15, 2010 the median
family income figures are as of October 9, 2009; for filings on or after March 15, 2009, median family income figures are as of February 25, 2010 ).
These figures are subject to change and the Calculator may not be up to date. If you are not sure what your family size is or how to calculate your
monthly household income, you should consult with an attorney when using this
calculator. If your income is greater than the median income for your state of residence and family size, you still might meet the
means test after taking into consideration certain expenses as defined by the Bankruptcy Code and other deductions,
including regular charitable donations (up to 15% of your income), school expenses, payments on 401(k)/IRA loans, and
health Insurance. Whether you are a lay person or an
attorney, please do not hesitate to call Attorney
Justin Kelsey at 508.655.5980 to discuss the correct
use of the calculator or to schedule a bankruptcy consultation. |
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| Below we have provided answers to many of the common questions that we are asked by our clients regarding the Means Test.
If you would like more information please do not hesitate to call us at 508.655.5980 or e-mail us.
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What is the Means Test?
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| The means test is a test required under the new bankruptcy law to determine a debtor's eligibility to file for bankruptcy
under Chapter 7 of the Bankruptcy Code. If your income is greater than the median income for your state of residence
and family size, in some cases, creditors have the right to file a motion requesting that the Court dismiss your cases
under Section 707(b) of the Bankruptcy Code.
It is ultimately up to the Bankruptcy Judge to decide whether the case
should be dismissed. |
How is the Means Test calculated?
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| The Means Test calculation compares your average monthly income (as calculated over the last six (6) months) to the median
family income in your state for a household of your size. If your average monthly income is lower than the median family income
for your state of residence and family size, then you meet the means test and there is a presumption that you may file for Chapter 7 relief.
If your income is greater than the median income for your state of residence and family size, you still might meet the
means test after taking into consideration certain expenses as defined by the Bankruptcy Code and other deductions,
including regular charitable donations (up to 15% of your income), school expenses, payments on 401(k)/IRA loans, and health Insurance.
If you are subject to this calculation Kelsey & Trask, P.C. will help you perform this task.
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What is the Median Family Income for Massachusetts?
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The Median Family Income for Massachusetts as of March 15, 2010 is as follows:
Family size 1: $53,315 per year
Family size 2: $69,204 per year
Family size 3: $82,297 per year
Family size 4: $99,293 per year
add an additional $6,900 per year for each additional household member, up until April 1, 2009.
For cases filed after April 1, 2009 add an additional $7,500 for each additional household member.
Please note that these figures are subject to change and you should consult with an attorney for the current figures.
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