Means Test

What’s the Means Test?

The Means Test was part of the Bankruptcy Abuse Reform Act, or “BARF”. It’s a formula to determine whether or not you can really afford to repay your creditors. If you don’t pass the means test your only option will be a Chapter 13 bankruptcy.

Note: The Means Test only applies to people whose debts are “primarily” consumer debts.

Do I have to take the Means Test?

Most people don’t have to take it as long as you can pass the Median Test. If your income is less than the median for the six months prior to bankruptcy, you won’t have to take it.

If you use an attorney you don’t have to worry about the rules of the test. You will just need to organize your finances and provide them to the attorney.

Call 480-755-8000 to speak with our Arizona bankruptcy attorney today for immediate help.