Chapter 7 Means Test

Many people who want to file bankruptcy would prefer to file for Chapter 7 as opposed to Chapter 13 because the former is far simpler and takes much less time than the latter. Not everybody is eligible, however, to file for Chapter 7 bankruptcy.

With certain exceptions, many individuals who want to file for Chapter 7 will need to pass a means test—a form that determines whether a person qualifies for government assistance or has the ability to pay some or all of his or her debts. Several people assume they will not pass bankruptcy means tests because of their incomes, but there are several factors that can impact whether an individual passes the means test.

Bankruptcy Attorney for Chapter 7 Means Test in Cincinnati, OH

Are you thinking about filing for Chapter 7 bankruptcy in Ohio or Kentucky? You will want to immediately seek legal representation for assistance preparing for any possible means testing. Contact Steiden Law Offices as soon as possible.

Our Cincinnati bankruptcy lawyers represent individuals in communities all over Kenton County and Boone County in Northern Kentucky as well as Hamilton County in Southern Ohio. You can have our attorneys review your case and help you understand all of your legal options when you call to schedule a free, confidential consultation.


Overview of Chapter 7 Means Test in Northern Kentucky


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Chapter 7 Means Test History

Lawmakers attempted for years to modify the Bankruptcy Code in order to make it more difficult for people who make "too much" money to file for Chapter 7 bankruptcy. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) was finally passed by significant margins in both the United States House of Representatives and United States Senate before being signed into law by President George W. Bush.

Among the many changes made by the legislation, one of the biggest was subjecting debtors with incomes above their states' census median incomes to 60-month disposable income based tests more commonly referred to as means tests.

When a person has an income that is less than the median income in his or her state, that individual will generally be allowed to file for Chapter 7. If, however, the debtor has an income that exceeds the state's median income, then he or she will be subject to the means test.

A debtor's current monthly income is reduced by certain specified allowed deductions, also known as presumed expenses, specified by the Internal Revenue Service (IRS). If a means test shows that a debtor has a current monthly income that exceeds certain limits, it can lead to him or her moving forward with the case under a "presumption of abuse." Why is this important?

When a Chapter 7 case is presumed to be an abuse of the Bankruptcy Code, the United States Trustee's Office will take an additional interest in the case but an experienced bankruptcy lawyer may be able to rebut the presumption by presenting various special circumstances that justify the case moving forward.


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Chapter 7 Means Test Information

You will want to make sure to retain legal counsel in order to achieve the most desirable outcome if you happen to be subject to the Chapter 7 means test.

Steiden Law Offices assists clients all over Southern Ohio and Northern Kentucky with Chapter 7 issues, and you can learn more about the means test by visiting some of the other following sections on our website:


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Ohio Chapter 7 Means Test Resources

Southern District of Ohio | United States Bankruptcy Court — The United States Bankruptcy Court for the Southern District of Ohio has offices in Cincinnati, Columbus, and Dayton. Visit this website to access local rules and forms, see a map of counties served, and read answers to frequently asked questions. You can also find BAPCPA, trustee, case, and general information.

Chapter 7 Means Test Calculation | United States Courts — The United States Court website is maintained by the Administrative Office of the U.S. Courts on behalf of the Federal Judiciary. On this section of the website, you can find information about Chapter 7 Means Test Calculation. Download Form 122A-2, form instructions, and committee notes.


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Steiden Law Offices | Cincinnati Chapter 7 Means Test Lawyer

If you want to file for Chapter 7 bankruptcy but have concerns about the means test, do not attempt to file without legal representation. Contact Steiden Law Offices today for help finding solutions to your financial problems.

Our Cincinnati bankruptcy attorneys assist individuals in Hamilton County in Ohio as well as Boone County and Kenton County in Kentucky. Call or fill out an online contact form to have our lawyers provide a complete evaluation of your case during a free initial consultation.



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