Nashville and Middle Tennessee Bankruptcy Attorney David Cannon Explains the Means Test
In 2005, Congress made substantial changes to the bankruptcy laws. Many believed that as a result of these changes in the law, it would be more difficult to file for bankruptcy.
This is not the case. Since these changes in the law, millions of Americans have still found bankruptcy to be an appropriate solution to their debt problems. We are the law firm of David F. Cannon. Based in Nashville and serving clients across Middle Tennessee, our lawyers help individuals seek debt relief through bankruptcy. The most important change to the bankruptcy laws involves what is known as the "means test." Now, if you want to file Chapter 7 bankruptcy, you are required to pass this test.
What Is the Means Test?
Simply put, in order to pass the means test, your household income must be less than the median income of a household of the same size in your state. According to the most recent figures, the median income in Tennessee is as follows:
| Number of Persons in Household | Median Income |
| One person | $37,538 |
| Two people | $46,432 |
| Three people | $52,368 |
| Four people | $62,197 |
| For each additional person | Add $7,500 |
If your household income is below these thresholds, you may be eligible to file Chapter 7 bankruptcy. If not, you still may be eligible to file Chapter 7 bankruptcy if your remaining disposable income is not sufficient to repay a portion of your unsecured debts. This is a complex formula. Our law firm can help you determine whether or not you are eligible under this test. If you do not pass the means test, you are still eligible to file Chapter 13 bankruptcy.
Contact the Nashville Bankruptcy Attorneys of David F. Cannon to discuss the Means Test.
To see whether or not you qualify for Chapter 7 bankruptcy, call 615-800-3725, toll free at 877-696-8680, or e-mail the law office of David F. Cannon today.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
