Bankruptcy means test: what is it?

Bankruptcy means test: what is it?

The means test in bankruptcy is a test to determine whether someone qualifies for bankruptcy. What the means test measures is whether someone can afford to pay their debts. If they can’t, their debts can be discharged, or eliminated, through a bankruptcy filing. If they can pay their debts, or at least a portion of them, the means test tells what they than can pay and what they can’t. Whatever debt can’t be paid can be discharged through bankruptcy.

There are a number of factors that go into the means test including, but not limited to, family income, size and expenses. Since the many variables can make the difference whether someone qualifies for bankruptcy or not, it is best to seek help on this subject.

Remember, bankruptcy consultations are always free!