Beat The Means Test

(With Up Dated Numbers as of April 1, 2023)

Hire a Bankruptcy lawyer is crucial when thinking about filing bankruptcy. When it comes to the Means Test a lawyer on your side is even more critical.

The Means Test is required for individuals filing bankruptcy in Chapter 7 or Chapter 13. The
the purpose is to see if your income qualifies you for Chapter 7 Or if you possess sufficient income
to repay your debts in Chapter 13.


The following are the thresholds for gross income in Illinois.

# In HouseholdMonthly6 MonthsAnnual
15,58133,55167,102
27,07442,44684,892
38,49550,975101,951
410,19061,144122,289
Add each add’l person8254,9509,900
    

Source Census Bureau <Median Family Income by Family Size as of April 1, 2023

The Means Test doesn’t count Social Security or Child Tax Credit money.
How does the Test work for each chapter?

  1. Most people make less money than the Means Test limit. If you make more money,
    filing for Chapter 7 bankruptcy might be more challenging.
  2. More calculations will occur when the family’s gross income exceeds these amounts.
    There are deductions and expenses, so you may still qualify for Chapter 7. Experienced lawyers
    know and understand what can be used for your benefit.
  3. Chapter 13. The Means Test determines how much you can pay in Chapter 13 over the
    term of the Chapter 13 plan. Skilled lawyers know how to navigate the Means Test for your
    greatest benefit. Many Chapter 13 plans pay less than 100% of debts. The duration of Chapter
    13 plans are five years. The time can be shorter if all debts are paid in full.
  4. Each client is different from the others. There are possible other aspects to the Means
    Test. Your lawyer can explain such to you. And when possible, use them to your benefit.
    The Means Test entails intricate calculations and specific legal requirements. Hiring a lawyer is
    essential to overcome the Means Test’s challenges or limit its impact. Look for a lawyer who has
    experience with the Means Test. Their knowledge and expertise will be invaluable in securing a
    successful bankruptcy case outcome.


Disclaimer: Remember, legal advice blogs are just for learning. If you need real legal help, you should talk to a lawyer.

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