MEANS TEST

The means test is used under the New Bankruptcy Law to determine if an individual Debtor is eligible to file under Ch. 7 of the bankruptcy code.  Here, your attorney will take the average gross income in your household over the past 6 months to determine if you are below the median for your state.  If you are then youve passed the means test.  If your income is way above the median income, you will have to file a Ch. 13.  However, even if you are above the median household income, your attorney may still be able to file a Chapter 7 for you depending on your monthly expenses.

As of February 13, 2006 the median income for households in Pennsylvania were as follows:

1 Person - $40,251.00

2 Person - $45,865.00

3 Person - $60,986.00

4 Person - $68,826.00

Add $6,300.00 for each individual in excess of 4.