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Official Form 122A2 Chapter 7 Means Test Calculation 12/15 To fill out this form, you will need your completed copy of Chapter 7 Statement of Your Current Monthly Income (Official Form 122A1). Be
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How to fill out chapter 7 means test

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How to fill out chapter 7 means test

01
To fill out the chapter 7 means test, follow these steps:
02
Gather all the necessary financial documents, including pay stubs, tax returns, and bank statements.
03
Calculate your current monthly income by adding up your average income from the past six months.
04
Compare your monthly income to the median income for your state of residence. This information can be found on the U.S. Trustee Program's website.
05
If your income is below the median income for your state, you qualify for chapter 7 bankruptcy and do not need to complete the means test.
06
If your income is above the median income, proceed with the means test calculation.
07
Subtract allowed expenses, such as rent, utilities, and basic necessities, from your monthly income to determine your disposable income.
08
If your disposable income is below a certain threshold, you pass the means test and qualify for chapter 7 bankruptcy.
09
If your disposable income is above the threshold, you may still qualify for chapter 7 bankruptcy depending on your overall financial situation and expenses.
10
It is recommended to consult with a bankruptcy attorney to ensure accurate completion of the chapter 7 means test.

Who needs chapter 7 means test?

01
Individuals who are facing overwhelming debt and want to file for chapter 7 bankruptcy may need to complete the means test.
02
The means test is designed to determine whether an individual's income is low enough to qualify for chapter 7 bankruptcy.
03
It is primarily used to prevent those with higher incomes from abusing chapter 7 bankruptcy laws and to encourage them to file for chapter 13 bankruptcy instead, where they would repay some of their debts through a repayment plan.
04
Therefore, individuals who have significant debt, a low income, and who do not have the ability to repay their debts may need to complete the means test to qualify for chapter 7 bankruptcy.

What is Chapter 7 Means Test Calculation12/15 Form?

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Instructions for the form Chapter 7 Means Test Calculation12/15

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Chapter 7 means test determines if an individual qualifies for Chapter 7 bankruptcy based on their income and expenses.
Individuals who want to file for Chapter 7 bankruptcy are required to fill out and file the means test.
To fill out the chapter 7 means test, individuals need to calculate their income, compare it to the median income in their state, and report their expenses.
The purpose of the chapter 7 means test is to prevent individuals with higher incomes from filing for Chapter 7 bankruptcy and directing them towards Chapter 13 bankruptcy instead.
Information such as income, expenses, household size, and the median income in the individual's state must be reported on the chapter 7 means test.
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