Fail the Means Test and Still File Chapter 7 Bankruptcy?

Failed the Means Test? Still Want to File Chapter 7?

Some people who fail the Means Test aren’t satisfied with the option of filing for a Chapter 13 . There is still a chance that you can file for a Chapter 7 bankruptcy but you’ll have to prove that you have a special circumstance that requires a review and is an exception to the rule or you’ll have to work around the Means Test.

Review the following with your bankruptcy attorney from Allmand Law to see if any one of these situations apply:

  • Timing is very important in a bankruptcy case. If for some reason the Means Test reviewed your finances when you had more income and now you have less (i.e. a job loss), then waiting a few months will give you a lower mean income and you may then pass the Means Test.
  • If you don’t have health insurance then getting it before you attempt the pass the Means Test is a good idea. Health insurance for you and your dependents can be deducted, because it is considered a necessity, and can lower your income and boost your expenses.
  • How many people live in your house? The Means Test looks at income based on how many people live in the same household, not just immediate family. You may or may not be able to use this to your advantage.
  • If you do file a Chapter 13, and your situation changes will you be able to convert it to a Chapter 7 at a later date?

Contact a Bankruptcy Attorney

Set up a free consultation with a bankruptcy attorney to help you receive the most benefit from your bankruptcy so you can have a fresh start.