Who may Avoid the Bankruptcy Means Test(Current Monthly Income Test)
The result of the Means Test determines if a person may file for chapter 7 protection and the amount that must be paid to unsecured creditors in a chapter 13. Please note that there are other criteria that determine whether a person may file for a chapter 7, and/or the amount that must be paid to unsecured creditors in a chapter 13.
The following bankruptcy debtors may avoid having to complete the Means Test analysis:
Debtors, whose debt is mostly non-consumer debt. Consumer debt is debt that was incurred by an individual primarily for personal, household or family purpose.Therefore, if most of an individual’s debt is business related, including business credit cards, the debtor need not complete the Means Test. Other non-consumer debt include personal injury and other tort claims and taxes. Thus, if any of these non-consumer claims make up most of your debt, you need not complete the means test.
A debtor that is a disabled veteran is exempt from the means test.
Military reservists and National Guard members that are on active duty or performing homeland defense are exempt. This exemption continues for 540 days after active duty is terminated.
Robert Manchel, New Jersey bankruptcy lawyer, may be contacted at (866) 503-5655 to discuss your options about filing for bankruptcy protection.