Determining your correct “applicable state” can make the difference between passing and failing the means test.
We show by example how the means test works, when a person qualifies for a Chapter 7 case simply by income.
You can have more income for the purpose of passing the means test as your household size increases. But what IS your household’s size?
You have to pass the means test to qualify for a Chapter 7 case. It’s often an easy test to pass but one with some crucial twists and turns.
Besides the many 3-year cost of living increases happening on April 1, 2016, new median income amounts also start applying on the same day.