Los Angeles Real Estate Attorney

Means Test Advice from Mitchell Reed Sussman & Associates

The Bankruptcy Means Test: Is Your Income Low Enough for Chapter 7 Bankruptcy? There are a lot of things that one should know about chapter 7 and chapter 13 of bankruptcy before applying for them.


While it is possible that a lot of people who choose to apply for them are eligible, it is also a fact that all those who are eligible should not apply for chapter 7. The primary difference in chapter 7 and chapter 13 is the fact that those who qualify for bankruptcy under chapter 7 do not need to repay their debts, while those who apply under chapter 13 do in fact require to repay their debts.


There are a few things that people need to keep in mind when they are applying for a chapter 7, and this is to ensure that they are able to qualify for it. The means test is to ensure that people who are able to repay their debts qualify under chapter 13 and not under chapter 7.

Chapter 13 provides coverage of bankruptcy to enable people to pay of a portion of their debts, but will not wipe out their debts all together. This is for people who fall into the high income group primarily.

Some of the factors that need to be taken into consideration are for those whose income is in excess of the average state medium. The test becomes more complex under such circumstances, and this depends on the amount of disposable income that a person earns. This money would be used to pay of a portion of the applicants debts.

If a person’s disposable income exceeds a certain amount they would not be eligible to apply for a chapter 7 bankruptcy. In addition to this there are also other factors that applicants need to keep in mind while choosing to apply for the means test, with the intention of applying for chapter 7 bankruptcy.

Mitchell Reed Sussman & Associates offers people the use of an online means test calculator to see if they are eligible to apply for the chapter 7 bankruptcy coverage. All that is required of the person who checks online is to enter the zip code, of the area that they live in and some income information. The calculator will automatically calculate the persons eligibility based on the average income of the state and other parameters. This saves people the time and complication of calculating whether they are eligible for chapter 7 or not.


For more information about our legal services, please contact us at 800-233-8521.

Back to top

Los Angeles Real Estate Attorney, All Rights Reserved - Copyright 2020.


No attorney-client relationship. The Law Office of Mitchell Sussman maintains this website exclusively for informational purposes. Viewing this site, using information from it, or communicating with The Law Office of Mitchell Sussman through this site by email does not create an attorney-client relationship between you The Law Office of Mitchell Sussman.

Nonreliance. Online readers should not act or decline to act, based on content from this site, without first consulting an attorney or other appropriate professional. Because the law changes constantly, this website's content may not indicate the current state of the law. Nothing on this site predicts or guarantees future results.