There are several terms, definitions, and procedures to understand when going through bankruptcy, and one of those is the means test.  To put it simply, a means test determines whether or not you have the “means” to pay for some or all of your debts.  Wikipedia describes the means test well.  It says, “The means test is perhaps best recognized in the United States as the test used by courts to determine eligibility for Title 11 of the United States Code Chapter 7 or Chapter 13 bankruptcy.”

If you are familiar at all with bankruptcy you will know that significant changes were made to United States bankruptcy laws in 2005.  One of the most noteworthy changes was in regards to means testing.  Wikipedia described the amendments by saying, “The amendments effectively subject most debtors who make above an income, as calculated by the Code, above the debtor’s state’s median income to an income based test.  This test is referred to as the means test.  The means test provides for a finding of abuse if the debtor’s income is higher than a specified portion of their debts.  If a presumption of abuse is found under the means test, it may only be rebutted in the case of special circumstances.  Debtors whose income is below the state’s median income are not subject to the means test.”

If you’re in a rough financial situation, don’t fear because the means test is generous in regards to which bankruptcy you qualify for.  Almost everyone seeking bankruptcy qualifies under the means test.  Anyway, the rules regarding the test are confusing to a newbie, so it would be best to speak with a bankruptcy attorney for help.  You can also use a means test calculator to help you determine if you qualify, but it won’t include all the details that you will need.

If you are struggling under the weight of mounting debts, bankruptcy can be your second chance.  Contact a great bankruptcy attorney.