What Is the Bankruptcy Means Test?
Utah Means test for Chapter 7 Bankruptcy
The Utah Bankruptcy Means Test is an income test to determine if the debtor or debtors qualify to file chapter 7 bankruptcy.To determine whether a debtor is not abusing the bankruptcy system, the debtor must meet the Utah chapter 7 bankruptcy means test. There is a short means test which simply compares the debtor(s) average gross income for the past full 6 calendar months to the median income for a household of the same size within the state as reported by the IRS. If the debtor(s) income is lower than or equal to the median income for the State, then the debtor(s) qualify under the short means test. If your average income exceeds the median income, you must take the full means test and analyze your actual disposable income by using our Utah bankruptcy means test calculator. The means test calculator will take your average gross annual income and subtract withholdings and other certain monthly expenses. We can help you determine if you pass the means test by closely analyzing your financial situation and completing the full Utah bankruptcy chapter 7 means test.
The means test is used to determine whether you have the ability to repay your creditors. If you are able to repay (fail the means test), you will be required to file bankruptcy under chapter 13 where your debt will be restructured by paying full or partial payments to creditors over time.
As of May, 1 2016 the following is the median income thresholds for Utah:
1 – $54,314
Families above a family of 4 add an additional $8,100 for each individual above 4. For updated information you can check the means test section of the US Trustee’s website.
Utah Means Test for Chapter 13 Bankruptcy
The means test in Utah is also used in chapter 13 bankruptcy cases. The means test in chapter 13 determines the length of the chapter 13 plan (commitment period) as well as determining the minimum amount that must be repaid to creditors over the term of the plan.
Get Qualified Bankruptcy Assistance
Determining whether you meet the Utah bankruptcy means test for chapter 7 is just one example of why it is important to get help from a knowledgeable bankruptcy attorney. While, the bankruptcy means test is part of the federal bankruptcy code, it is interpreted differently between jurisdictions. That means you must qualify under local interpretation or under the Utah bankruptcy means test. Utah bankruptcy lawyers at Weekes Law have the knowledge and expertise to ensure that you qualify under the Utah’s means test.