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  • (951) 304-3431
  • firm@ashcraftfirm.com
  • 25096 Jefferson Ave, Suite A4 Murrieta, CA 92562
Bankruptcy Claim
POSTED IN: Bankruptcy

What is the Means Test?

If you are considering filing for Chapter 7 bankruptcy, the state of California requires that you first pass what is called a “means test.” The means test simply determines if your income is below the state’s median income for a household of a similar size. Passing the means test could qualify you to file for Chapter 7 bankruptcy.

You may be exempt from the means test if:

  • You do not owe primarily consumer debts
  • You are a disabled veteran who accrued debt primarily during active duty or while performing homeland defense activity

Because bankruptcy is not right for everyone, it will be imperative that you speak with a skilled legal professional before considering taking any type of action. Without the proper guidance, you could end up making a decision that may put you in a worse state than when you began. Ultimately, it is our goal at The Ashcraft Firm to put our clients in the best possible position for growth and long-term financial stability. Let us help you today.

Are you struggling with debt? Are you looking for a way to get out from under your debt?

Contact our Temecula bankruptcy lawyers at (951) 304-0941 to learn how we can help you regain your footing.

California’s bankruptcy means test is a formula used to determine if a consumer debtor has enough financial means to file for Chapter 7 bankruptcy. In other words, if the debtor earns too much money, or has enough disposable income, he or she may not qualify for Chapter 7 bankruptcy. The test calculates a debtor’s projected monthly and yearly income by only analyzing the past 6 months of income.

Average annual income can be determined by:

  • Averaging your monthly income over the last 6 calendar months
  • Determining your average monthly expenditures
  • Subtracting your monthly household expenses from your monthly average income
  • Multiplying your monthly average income by 12 to determine your annual income

Even if your financial means does not qualify you for Chapter 7 bankruptcy, do not assume that your situation is helpless. Our Temecula bankruptcy attorneys have helped thousands of consumers – people who are just like you – since 1998. We can help you establish an affordable debt repayment plan by filing for Chapter 13 bankruptcy, or we could help you determine if other bankruptcy alternatives may suit your long-term needs and goals better.

Though the means test may seem simple and straightforward, when put into practice, it can actually be a complex issue that must be addressed with the help of a legal professional. We want to explain every aspect of the bankruptcy process to you so that you completely understand your rights and options, and can face this new chapter of your life feeling informed, empowered, and supported.

If you are considering filing for bankruptcy or want to determine if Chapter 7 bankruptcy is right for your situation, do not wait another moment to speak with our Temecula means test lawyers. We can help determine which debt relief option best complements your interests at this time – and for years to come. We are in the business of long-term solutions and look forward to speaking with you about how we can help you make positive changes for the future.

Debt relief could be a phone call away.
Call our office at (951) 304-0941 to schedule your free case consultation.


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