Means Test Question

[manglicmot]

I found this site in one of the threads here, I don't remember which one: http://freemeanstesting.com/zmt/Mt_intro.asp

It leads me to believe that if you are below the median income of your state, you do NOT have to take a means test, or more accurately, you do not have to take the rest of the means test. Here is what I'm referring to:

"The means test provides three benchmarks, the passing of any one of which is satisfactory. In other words, you need to meet only one of three criteria.

The first criterion compares your income to the median income for your area. If you meet this criterion, you pass the test and need not complete the rest."

This seems to contradict most of what I've read on the forums, that you have to take the means test to see how much disposable income you have left over. Where am I getting confused?

[manglicmot]

Oops, sorry wrong forum. Can someone move this to the bankruptcy forum please?

[lrprn]

Oops, sorry wrong forum. Can someone move this to the bankruptcy forum please?

Done

[lrprn]

I found this site in one of the threads here, I don't remember which one: http://freemeanstesting.com/zmt/Mt_intro.asp

It leads me to believe that if you are below the median income of your state, you do NOT have to take a means test, or more accurately, you do not have to take the rest of the means test. Here is what I'm referring to:

"The means test provides three benchmarks, the passing of any one of which is satisfactory. In other words, you need to meet only one of three criteria.

The first criterion compares your income to the median income for your area. If you meet this criterion, you pass the test and need not complete the rest."

This seems to contradict most of what I've read on the forums, that you have to take the means test to see how much disposable income you have left over. Where am I getting confused?

The Means Test actually has two parts. If your income is below your state's median income, then you don't have to continue on into the second, much more detailed part of the Means Test that calculates disposable income over the next five years that would be available to pay back your creditors in a Ch 13.

Any time the government is involved in creating anything financial, you know it's going to be hard to understand! This website explains the Means Test very well in understandable terms - http://ezinearticles.com/?The-New-Ba...glish&id=74968

Hope this helps! Let us know if you still have questions.

[SinkingFast]

If your income is below the Median, you'd fill out Form B22A.

You compare your real earned income to the Median income on Lines 13 and 14.

If your earned income is below the Median, you check the box "Amount on Line 13 is less than or equal to Line 14. Presumption does not arise." And you're done with the Means Test on Line 15.