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The Means Test

The Means Test

The Means Test determines whether you qualify for relief under Chapter 7 and, if you file Chapter 13, what your plan payment will be.

To qualify for Chapter 7, according to the Means Test, your monthly income less reasonable expenses (some actual expenses & some local/national standards) must be less than the “median income” for South Carolina.

If your income is too high to qualify for Chapter 7, the Means Test informs the Chapter 13 Trustee what available “disposable income” you have to distribute to unsecured creditors.

In Chapter 13, the Means Test is used to determine “disposable income”. This mathematical test looks at your income, household size, some actual expenses, and some national standardized expenses.

Using these factors the trustee determines what you should have left over each month and what you would have over sixty months. The amount of disposable income over sixty months is the “base” of your plan, the amount that must be paid by the Chapter 13 plan. (To schedule a complete Means Test analysis, schedule a call back appointment with attorney Malinda M. Pennington. 844-322-6932)

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