Internet's first get-out-of-debt community - 134,000 members

Posted: Wed Jun 11, 2008 8:52 pm Subject: means test

My sister I think will qualify to file for a chapter 7 if I understand this means test right. Question she makes like $13.46 an hr working 40 hours a week, pays health insurance, life insurance, retirement, receives child support for one of her children of $307.00 per month, and pays rent at $600.00 a month and all utilities.

If I read the median income level for the state of nebraska it says $36,179 for a 1 earner family, and $58,055 for a 3 person family. In that 1 earner family would that include just herself or does that include both her and her two children for the $36,179 or do I go by the $58,055 for the 3 person family. She is not married and lives with her two children aged 9 and 14.

I am thinking that the $58,055 is for a two earner family right? I am confused how this means tests works. I don't think she will qualify for a chapter 13 I think she is going to qualify for the chapter 7. Is this right? I am going to try to figure this out for her and try to do it myself. Any help, advice would be appreciated. We have an appointment next week to talk to an attorney on preparing it we will see what they have to say but I think I can do it for her because it is a no asset case, doesn't own anything other than her car.

Any advice would be great:)

Posted: Wed Jun 11, 2008 9:47 pm Subject:

Ladybug, I found a great website when I was researching whether my husband and I would qualify for Chapter 7 BK, if it comes to that for us. You just enter your zip code, then go the the bankruptcy means test calculator. You'll enter income and family size and it will tell you whether you qualify. If you don't qualify at that step, then it will walk you through the next steps of seeing whether you qualify once all of your allowed expenses are taken into account. Here is the link:
legalconsumer.com/bankruptcy/br_home.php

*link deactivated as per the forums rules-Jason

Posted: Wed Jun 11, 2008 11:21 pm Subject:

The mean test to qualify for the ch-7 involves two steps- first one is to qualify the median income of the state. If your income is less than the household median income that is set as the qualifier, you can file bk under ch-7. However, if the income exceeds the threshold you then have to calculate the ratio between your disposable income and unsecured debt. At this stage, some more expenses, called the allowable expenses and are determined by the IRS, get added to your initial total expense too qualify you for filing ch-7.

Hope I was helpful. The other members will shortly be around with more help.

Posted: Thu Jun 12, 2008 6:16 am Subject:

Thank you guys, alias1958 how did you find that website that is GREAT!!!!!!!!!

Posted: Thu Jun 12, 2008 8:28 am Subject:

Ladybug, I was searching for information and just figured that there must be some kind of calculator available by now. So I searched for bankruptcy calculator or bankruptcy means test calculator, or some such thing. I was very excited to find it since trying to figure it out on my own was quite confusing--as you also found! I'm glad I could be of help! Good luck to you and your sister!

*Name:
*Email:
*Phone:
*Zip:
*Debt

	* denotes required field

Internet's first get-out-of-debt community - 134,000 members

means test

Members Area

Free Debt Counseling

Ask the community

Featured Discussions

Featured Articles

Question of the Month

Also See

Recent Forum Discussions

Recent Blog Post