The bankruptcy means test determines who can file for debt forgiveness through Chapter 7 bankruptcy. It takes income, expenses and family size into account.

Before you can wipe away debts through bankruptcy, you’ll need to pass the Chapter 7 bankruptcy means test. Find out more about the bankruptcy means test.

How the Bankruptcy Means Test Works. The means test can be quite confusing because Congress left many aspects of it open to interpretation. At its simplest, the means test consists of two steps.

The means test assesses your ability to repay debts to determine eligibility for Chapter 7 bankruptcy. You automatically pass the means test if your household income is under your state's median ...

The means test assumes that these discretionary funds are available for debt repayment and calculates how much you could repay in total over five years, or 60 monthly payments.

Understanding Means Tests . Today in the United States, welfare benefits are given based on a means test of income dealing with the Federal Poverty Level (FPL), or the poverty line. This number is ...