INSTRUCTIONS: CHAPTER 7 MEANS TEST

Chapter 7 bankruptcy proceedings completed by individuals involve the liquidation of assets with the purpose of paying off debts and discharging the balance which cannot be paid afterwards. To obtain this status, you must first fill out the Chapter 7 Means Test proving they qualify for this status. These forms are provided by the United States Courts system and can be printed out from their website.

Chapter 7 Means Test Step 1: Part I should be completed by any debtor who is a military member or whose debts are not consumer related.

Chapter 7 Means Test Step 2: Part II is designed to determine your total current income from the last six months. List your marital status, gross wages, income from operating a business or farm, rent and property income, and any other income. Calculate your current monthly income as indicated.

Chapter 7 Means Test Step 3: In Part III, list the average median family income for households of your size in your state. This information is available on the website of the Department of Justice. If your current monthly income from Part II is equal to or less than this amount, skip to Step 10.

Chapter 7 Means Test Step 4: Part IV allows you to adjust your total monthly income based on various issues related to your spouse's financial status.

Chapter 7 Means Test Step 5: Part V, Subpart A allows for standard deductions as defined by the IRS. The Department of Justice lists the figures you will need, such as mortgage and household expenses.

Chapter 7 Means Test Step 6: Part V, Subpart B allows you to list other expenses, such as the cost of education for dependent children under 18.

Chapter 7 Means Test Step 7: Part V, Subpart C allows you to list expenses related to other debt payments.

Chapter 7 Means Test Step 8: Part VI measures your total deductions listed under the previous three sections against your average monthly income as listed in Part II. Completing this part of the form will determine how much of your debt can be disposed of versus your expenses.

Chapter 7 Means Test Step 9: Part VII allows you list any additional expense you feel are essential.

Chapter 7 Means Test Step 10: Sign and date the form. This will be part of your application for bankruptcy at your applicable court.