lady justice, legal, law-2388500.jpg

Median Income and the Means Test

In 2005, BAPCPA (Bankruptcy Abuse Prevention and Consumer Protection Act) was passed. One “fun” part of BAPCPA is the application of the means test in a consumer case. If your household income (for the last 6 months before you file your bankruptcy petition) is below the median income for your household size in your state, then the means test is pretty easy. If your household income is above the median income, then the means test becomes more complicated. How do you know if your household income is above the median income for your state? Here is a link to where you can find the median income for means test purposes. If you are filing a consumer Chapter 7 Bankruptcy and your income is over the median income, the means test becomes a bit more complicated. Depending on the results of the means test in your case, you may not qualify for a Chapter 7 Bankruptcy, and may have to file a Chapter 13 bankruptcy instead. Elizabeth Rosar Chermack is a Minnesota Bankruptcy Attorney, and can represent you in your bankruptcy matter.  Call (952) 491-0390 or send an email to to schedule a consultation with Liz. ATTORNEY ADVERTISING MATERIAL. The content of this website is for informational purposes only and is not intended as legal advice. No attorney/client relationship is formed by use of this website. Do not submit confidential information via this site unless and until there is a signed retainer contract on file. Elizabeth Rosar Chermack, Attorney at Law, is a debt relief agency helping people to file for bankruptcy relief under the bankruptcy code.