New Day Legal
New Day Legal

Please Call Us For A Free Strategy Session


(804) 417-4905


(703) 664-1912


(540) 788-2273

Richmond, Fairfax, and Warrenton Bankruptcy Lawyers

What Is the Means Test and How Do I Qualify?

Many clients ask us about the means test and if it is required to be eligible to file for bankruptcy. There are many people who fear the means test because they believe that not passing it will force them to file for Chapter 13 bankruptcy or discount them entirely from being able to file.

At New Day Legal we know that these reasons are not necessarily true. The laws do state that before filing for Chapter 7 bankruptcy, you must demonstrate the need for it and this is done by the means test.

How Does It Work?

Before the means test was established, the laws were less strict as to who could file for bankruptcy. Unfortunately, that led to many people taking advantage of the system. The means test was then created to ensure that those who are truly drowning in debt are given full consideration under the law.

The means test involves the following steps:

  • If your average monthly income amounts to more than the median, you must complete the second phase of the process. If your income is sufficient enough to pay for some of the unsecured debts you have, you may be recommended to file Chapter 13 bankruptcy instead.
  • Your average monthly income is compared with the median family income as prescribed by the state by using your household’s last six months of income prior to your filing month. Your income should be equal to or less than the state.

If you pass these requirements, then you would be able to move forward with Chapter 7 bankruptcy. As always, you should consult first with a Richmond, Fairfax, and Warrenton bankruptcy attorneys to determine whether or not you can qualify for Chapter 7.

Call Us At (540) 788-2273!

We at New Day Legal can help decide which plan of action is right for you. Even if you find that you do not qualify for Chapter 13 bankruptcy, it does not mean all hope is lost. There is always a way to find relief to any debt problem, no matter how small or large the issue is perceived to be.

Contact us today to discuss your bankruptcy case. We are here to help you build the foundation for a brighter, stronger financial future!

New Day Legal

Please Call Us For A Free Strategy Session
(804) 417-4905 | (703) 664-1912 | (540) 788-2273