Chapter 7 Means Test Calculation

A Chapter 7 Means Test Calculation is a legal document filed by a debtor in a Chapter 7 bankruptcy case, demonstrating that the debtor meets the income and expense requirements for a Chapter 7 discharge. The means test is designed to prevent abuse of the bankruptcy system by debtors who have sufficient income to repay their debts. The calculation takes into account the debtor’s income, expenses, and other factors and compares them to certain standards and thresholds set by law. If the debtor’s income and expenses fall below the applicable thresholds, they may be eligible for a Chapter 7 discharge. If the debtor’s income and expenses exceed the thresholds, they may be required to file a Chapter 13 case instead.