Saturday

Isn't there some income test for bankruptcy filers?

According to the IRS, if your income is less than or equal to the median income in your state, for a family of your size, you can file for Chapter 7 total liquidation. But what if your income is more than the median income in your state? The IRS has created a test called the “means test” to figure out whether you really should be making payments on a Chapter 13 plan. If your income is enough after you subtract certain expenses the IRS allows and debt payments they will require you pay, then you will be forced into a Chapter 13 plan.