Bankruptcy Terms Explained in Plain English
Means Test
Plain-English Definition
An income-and-expense analysis used to assess whether certain Chapter 7 filings are presumed abusive.
Why it matters
It is more than a single income cutoff. Household circumstances, permitted expenses, and exceptions can matter. Passing or not being subject to the means test does not resolve every eligibility issue; an attorney should review the whole situation.
A simple example
A household earning above the median asks whether its expenses and circumstances affect the Chapter 7 analysis or whether Chapter 13 is a better fit.
Illustrative only; not a prediction of any case outcome.
See how this applies to you
Source reference: U.S. Courts Bankruptcy Basics Glossary. This page provides a plain-English explanation, not a quotation of the glossary.
Need advice about your actual situation?
A definition cannot replace a review of your finances, property, debts, and goals. Stewart Law serves bankruptcy clients throughout Florida.
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