The Means Test helps determine what chapter best suits the client by examining their income.
In the Means Test, we look at the average of the six months of income before filing, then reduce that number by court-permitted expenses and deductions. If you pass the Means Test, meaning you have limited or negative disposable income, you will file a Chapter 7. If you have disposable income over a certain amount, you will file a Chapter 13.
Timing can be a crucial factor in this process. If you pass the Means Test, there’s no presumption of abuse. If you fail the Means Test, there’s a presumption of abuse in Chapter 7. However, it is a rebuttable presumption, and an attorney can help navigate as needed.