The Means Test You Have Options

The Colpitts Law Firm is here to help you. Reach out to us today to discuss your case.

The Chapter 7 Bankruptcy Means Test

The Colpitts Law Firm, Trusted Bankruptcy Attorneys for over 22 Years

If you are considering filing for bankruptcy, the first step is to see if you are eligible. The bankruptcy means test is the name of the process for determining if individuals qualify to file for debt forgiveness through Chapter 7 bankruptcy. The formula is designed to prevent high-wage earners from filing for bankruptcy.

Greggory T. Colpitts is a board-certified attorney in Tulsa who specializes in bankruptcy law. He and The Colpitts Law Firm are qualified to answer all of your questions about bankruptcy and help you determine if you are qualified. If you are, we can guide you through the necessary steps of filing for bankruptcy.


Contact us at (918) 302-2662 today to find out if you qualify to file for Chapter 7 bankruptcy.


How the Test Works

The bankruptcy means test is meant for those who have consumer debts, like debt from credit cards or medical expenses. The test is designed to reveal if an individual has any disposable income that could be used to pay off debt.

The test has two parts: The first part determines whether your household income is below the median state income. Your income for the past six months is calculated by combining several possible sources.

Sources of income include:

  • Wages, salary, tips, bonuses, overtime, commissions
  • Gross income from a profession, business, or farm
  • Interest, dividends, and royalties
  • Rental and real property income
  • Retirement and pension income
  • Annuity payments
  • Workers’ compensation
  • Unemployment compensation
  • State disability insurance
  • Regular spousal support or child support

If the resulting calculation shows that a debtor’s income is less than or equal to the state median, they have passed the means test. However, if the debtor makes more than their state’s median income, in order to be eligible for bankruptcy they must pass a second part of the means test.

The second part of the test involves calculating expenditures over the last six months. Certain costs such as rent, clothing, groceries, car payments, and medical costs are considered to be “allowable expenses.” The allowable expenses are subtracted from total income and result in the amount of disposable income that is available to pay off debts. If this is low enough, an individual may still qualify for Chapter 7.

It is very important to calculate these as accurately as possible, as an omission of items or conflicting amounts for the same expense can result in your application being rejected. For this reason, it is highly recommended that you hire a bankruptcy attorney to keep you from making crucial mistakes.

Attorneys You Can Count On

We’ve only been able to scratch the surface of all the complicated bankruptcy laws. For help attaining accurate calculations of your income and expenses in order to avoid penalties, reach out to our team. We have helped several Oklahomans overcome their debilitating debt and find their way to a brighter future. Reach out to our Tulsa bankruptcy attorneys for more information.

Contact us online or call (918) 302-2662 to get started on your case.

The Colpitts Difference

What You Can Expect With Us
  • Thousands of Bankruptcy Cases Handled
  • American Board Certified
  • Extensive Knowledge of Bankruptcy Law
  • Almost Three Decades of Experience

Hear from Clients We've Helped

Client Testimonials
    Lauren Colpitts is a wonderful, kind, patient and extremely knowledgeable bankruptcy attorney.

    “Sad to say I had to file bankruptcy but I am blessed to have found Colpitts Law Firm and specifically Lauren Colpitts. Lauren is a wonderful, kind, patient and extremely knowledgeable bankruptcy attorney. She has never made me feel guilty about having to f”

    - Carolyn
    I highly recommend the Colpitts for their legal services! Kind people who care about their clients.

    “I'm beyond grateful for the incredible care the Colpitts firm gave to me during the years we worked together. I could rest confident in their expertise in this area and continue on the program without concern. I highly recommend the Colpitts for their lega”

    - Kristine
    They made what was a stressful time easier to manage.

    “The staff was always friendly , courteous , and responsive. They made what was a stressful time easier to manage.”

    - Misty
    Very professional, timely responses, overall positive experience.

    “Very professional, timely responses, overall positive experience.”

    - Stoney
    Would recommend using them to anyone needing their services.

    “All staff was very helpful and made the experience as good as it could be. Always helpful and never made me feel like I was asking too many questions. Would recommend using them to anyone needing ...”

    - Venn
/

Committed to Excellence

Schedule a Consultation Today
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.