The Means Test 

Chapter 7 Means Test 


The Chapter 7 means test is a formula applied
to determine whether or not the consumer should have enough money
available to make some minimal payment to creditors in a Chapter 13
bankruptcy. 1  Median Income Comparison The first step in the Chapter 7 bankruptcy
means test is simple: it compares your income to the median income of
a Florida family the same size as yours. 2  Calculating Disposable Income and Unsecured Debts The second step is a bit more complicated. Your "disposable income" needs to be calculated, itself. Certain allowable expenses (determined by IRS guidelines) are subtracted from your income to find your "disposable income." Depending upon what this number is will determine if Chapter 7 is right for you. 

