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BAPCPA restricted the number of debtors that could declare Chapter 7 bankruptcy. The act sets out a method to calculate a debtor's income, and compares this amount to the median income of the debtor's state. If the debtor's income is above the median income amount of the debtor's state, the debtor is subject to a "means test." [2]
The amendments effectively subject most debtors who have an income, as calculated by the Code, above the debtor's state census median income to a 60-month disposable income based test. This test is referred to as the "means test". The means test provides for a finding of abuse if the debtor's disposable monthly income is higher than a specified ...
The means test provides for a finding of abuse if the debtor's income is higher than a specified portion of their debts. If a presumption of abuse is found under the means test, it may be rebutted only in the case of "special circumstances". [9] Debtors whose income is below the state's median income are not subject to the means test.
Median income: $189,160 to $390,210. The top 20% of earners are in the upper class. However, the Survey of Consumer Finances breaks this group down even further into those in the 80th to 90th and ...
The median income for single, full-time workers is $57,200, ... Based on calculations for one person from the California housing division, the median income limit is $66,600.
Decide if you will file for Chapter 7 or Chapter 13 bankruptcy. ... You must have an average monthly income lower than the median income for your state or pass a means test.
If the monthly income is less than the state's median income, the plan is for three years, unless the court finds just cause to extend the plan for a longer period. If the debtor's monthly income is greater than the median income for individuals in the debtor's state, the plan must generally be for five years.
Bankruptcy. The mere word can evoke shame, fear and dread — and for good reason. When you file for bankruptcy, your credit score takes a major blow, possibly dropping as much as 240 points ...