[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.fight13.com\/what-is-the-bankruptcy-means-test#BlogPosting","mainEntityOfPage":"https:\/\/www.fight13.com\/what-is-the-bankruptcy-means-test","headline":"What Is the Bankruptcy Means Test?","name":"What Is the Bankruptcy Means Test?","description":"If you have fallen significantly behind on your debts and don\u2019t see a way to pay them off, you\u2019re likely thinking about filing for bankruptcy. This is often an ideal solution for many, as it allows them a fresh financial start and can help them get back on their feet....","datePublished":"2019-04-15","dateModified":"2025-09-19","author":{"@type":"Person","@id":"https:\/\/www.fight13.com\/attorneys\/matis-h-abarbanel#Person","name":"Matis Abarbanel","url":"https:\/\/www.fight13.com\/attorneys\/matis-h-abarbanel","identifier":55,"image":{"@type":"ImageObject","@id":"https:\/\/www.fight13.com\/wp-content\/uploads\/2025\/09\/matis-abarbanel_avatar-96x96.png","url":"https:\/\/www.fight13.com\/wp-content\/uploads\/2025\/09\/matis-abarbanel_avatar-96x96.png","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Loan Lawyers, LLC","logo":{"@type":"ImageObject","@id":"https:\/\/www.fight13.com\/wp-content\/uploads\/2020\/03\/icon-logo.png","url":"https:\/\/www.fight13.com\/wp-content\/uploads\/2020\/03\/icon-logo.png","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.fight13.com\/wp-content\/uploads\/2020\/03\/means-test.jpg","url":"https:\/\/www.fight13.com\/wp-content\/uploads\/2020\/03\/means-test.jpg","height":3225,"width":4832},"url":"https:\/\/www.fight13.com\/what-is-the-bankruptcy-means-test","about":["Bankruptcy"],"wordCount":1224,"keywords":["bankruptcy","chapter 13","chapter 7","means test"],"articleBody":"If you have fallen significantly behind on your debts and don\u2019t see a way to pay them off, you\u2019re likely thinking about filing for bankruptcy. This is often an ideal solution for many, as it allows them a fresh financial start and can help them get back on their feet.The two most common types of bankruptcy are Chapter 7 and Chapter 13. Chapter 13 does not discharge debt, but instead restructures it in a way that\u2019s easier for the debtor to pay off. Chapter 7 bankruptcy, on the other hand, will discharge most debts. It\u2019s for this reason that when a person wants to file for bankruptcy, they often want to file for Chapter 7. In order to do so, though, you first have to pass the bankruptcy means test.The Bankruptcy Means TestThe bankruptcy means test is a test to determine the financial means of a debtor filing for Chapter 7 bankruptcy. The purpose of the test is to prevent high-income earners from declaring Chapter 7 bankruptcy when they are capable of paying off their debts. When the test finds a debtor has the financial means to pay back creditors, they are often unable to file for Chapter 7 bankruptcy.The means test will deduct specific monthly expenses from your current monthly income in order to determine your disposable income. The test will take six month\u2019s worth of your average income into consideration when determining your average disposable income.The means test does consider your last several months\u2019 worth of income when determining if you\u2019re eligible for Chapter 7 bankruptcy. However, it will also take certain factors into consideration. For example, if you had a great job for four months but are now unemployed, the test will consider your new situation. The test then compares your income with that of other households of the same size in the state of Florida.In most cases, the higher a person\u2019s disposable income is, the less likely it is that they will pass the means test. If they don\u2019t, they are unable to file for Chapter 7 bankruptcy. However, there are steps you can take if you want to file for Chapter 7, but feel as though you won\u2019t pass the means test.Tips to Help You Pass the Means TestIt\u2019s true that high-income earners are going to have a much more difficult time passing the means test than those with lower incomes. This doesn\u2019t mean, however, that those with higher incomes can never file for Chapter 7 bankruptcy. There are steps you can take to increase your chances of passing the means test and filing for the type of bankruptcy you prefer.The first step you can take is to increase your retirement contributions to the maximum amount allowed by the IRS. While taking the means test, you are allowed to deduct IRS-approved retirement contributions from your income. When these amounts are deducted, you could give yourself a much better chance of passing the means test.Another IRS-approved deduction when taking the means test is charitable contributions. Due to this, when facing bankruptcy, you can increase the amount you give to charity and have this amount deducted from your income when taking the means test.Of course, tax obligations are also allowed by the IRS and are deducted from a person\u2019s monthly income during the means test. This one seems like the most obvious deduction for debtors but too often, people facing bankruptcy overlook the taxes they are required to pay. They don\u2019t include them in their monthly expenses and don\u2019t pass the means test, only to later regret that they didn\u2019t include them in the test.Lastly, if you want to file for bankruptcy and are still paying off a car loan, keep your car when filing. The means test allows you to deduct your monthly car loan payments from your monthly income. While it may make sense for you to unload these payments by getting rid of your car, keeping the vehicle and the loan that comes with it is often very helpful when filing for bankruptcy.Passing the Bankruptcy Means TestIf you pass the bankruptcy means test, it means you are eligible to file for Chapter 7 bankruptcy. This will discharge most of your unsecured debts such as medical bills and credit card debt. If you\u2019re considering this route, it\u2019s best to speak to an attorney who can help you make the decision.Chapter 7, while it discharges most of the debt, also won\u2019t allow you to keep many of your assets. This is an area of concern particularly for those with high incomes that have likely accumulated a number of assets. An attorney can help anyone filing for bankruptcy determine which type of bankruptcy is right for them.Failing the Bankruptcy Means TestThere is no appeal for those who fail the means test. For many, the only option is to file for Chapter 13 bankruptcy. While this doesn\u2019t allow for a total discharge of most debts the same way Chapter 7 does, it still provides a restructuring that can make it easier to pay off debts. Under Chapter 13, debts are typically paid off within three to five years.However, this isn\u2019t always the only option you have after failing the means test. If your financial situation changes in six months, you can take the means test again. When your current monthly income is significantly lower than it was the first time you took the means test, you could meet the threshold for Chapter 7 debt forgiveness.Talk to a Florida Bankruptcy Attorney to Help with Your Means TestTaking the means test is one of the earliest and most important parts of filing for bankruptcy. It will tell you how much debt you have, and which type of bankruptcy you can file for. However, before taking it you should speak to a bankruptcy lawyer in Fort Lauderdale that fully understands everything that comes with this test.If you\u2019re considering bankruptcy, or have already started the process, contact the Loan Lawyers at (954) 523-HELP (4357). We\u2019ll review everything you should do to give yourself the best possible chance of passing the means test and filing for the type of bankruptcy you prefer. We\u2019ll ensure all paperwork is filed on time and help you secure your financial future. Don\u2019t try to go through this lengthy process on your own. Call us today or fill out our online form for your free case evaluation.About the AuthorLatest PostsMatis AbarbanelMatis Abarbanel is the founding partner and senior attorney at Loan Lawyers in South Florida. He focuses his practice on consumer rights, helping homeowners navigate issues such as foreclosure and financial hardship. Matis also brings a wealth of experience from his previous work in personal injury law. As a devout Chasidic Jew, he is committed to making a positive impact in his community and dedicates his efforts to charitable initiatives through his non-profit organization, The Center, which aids at-risk Jewish youth. Matis actively serves clients across South Florida and is passionate about empowering individuals to secure their rights and achieve a better future.When Foreclosure Errors by Lenders Lead to Legal Remedies for Homeowners in Fort LauderdaleWhat Homeowners Can Do When Loan Documents Contain Forged or Altered SignaturesUnderstanding Florida\u2019s Debt Forgiveness Programs and IRS Rules"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"What Is the Bankruptcy Means Test?","item":"https:\/\/www.fight13.com\/what-is-the-bankruptcy-means-test#breadcrumbitem"}]}]