EXPENSES TO HELP YOU PASS THE MEANS TEST

Expenses to help you pass the means test. Bankruptcy lawyers are often asked what expenses will help you pass the bankruptcy means test? What expenses will not? The means test determines if a person qualifies for a Chapter 7 bankruptcy filing. The means test is discussed in another article on this site in depth. This discussion will discuss specific expenses that could help you pass the bankruptcy means test. You can deduct taxes obligation that you pay on your income. If you have involuntary deductions from your paycheck those can be included in the means test. These are expenses your employer deducts from your paycheck whether you want it deducted or not. These deductions include mandatory retirement plans, union dues, and uniforms. You are also eligible to count certain health care expenses. These expenses include the amount you spend on health, disability, or even term life insurance expenses. You can also count expenses on secured debts. These debts are on your home mortgage and car loans. The means test looks at what you would pay on these debts in the sixty months after bankruptcy. So if you would pay your home or car off in less than sixty months, you can only deduct the sixty month average. Not your entire monthly payment. You can also deduct any alimony or child support a court has ordered you to pay. If you have out of pocket health care costs not covered by insurance, that is counted as well. This assumes that amount is more than the allowed national standard. Expenses for school are also counted. The school expenses must be required for your job. Expenses for school for a mentally or physically disabled child are also counted. Expenses for charitable contributions are also permitted. If you spend money taking care of a an elderly or disabled family member, that can also be deducted. You are also permitted expenses for certain special circumstances. All of these expenses could help you pass the means test. This would be mean you would qualify to file a Chapter 7 bankruptcy. I would always advise people to consult with a bankruptcy lawyer. Find out what expenses you have  that will be calculated into the means test. Also ask a bankruptcy attorney if Chapter 7 bankruptcy is right for you. Just because you can file a Chapter 7 bankruptcy, does not mean you should. If a Chapter 7 bankruptcy is right for you, talk to a bankruptcy lawyer. Even if you think your income is too high. It does not mean you will definitely not pass the bankruptcy means test.