What is the income limit for filing Chapter 7 in Indiana?

If your total monthly income over the course of the next 60 months is less than $7,475 then you pass the means test and you may file a Chapter 7 bankruptcy. If it is over $12,475 then you fail the means test and don’t have the option of filing Chapter 7.

What income is included in means test?

For the means test purposes, your current monthly income (CMI) is the average monthly income you receive from all sources during the full six-month period preceding your filing date.

Is the means test based on gross income?

Your Income and the Means Test. When determining whether you qualify for Chapter 7 bankruptcy, the means test compares your average gross monthly income for the six-month period before filing to the median income of similar households in your state. (Learn more about calculating your income for the means test.)

How do you pass a means test with high income?

You can earn a high income and still pass the means test if you have substantial expenses like a hefty mortgage, multiple car payments, taxes, childcare, health care, or care of an elderly or disabled person.

What if I fail the means test?

If you fail the means test, you won’t be able to use Chapter 7 bankruptcy to wipe out debts. Instead, you might qualify to repay a portion of what you owe in Chapter 13 bankruptcy through a three- to five-year Chapter 13 repayment plan.

How does a means test work?

A means test is a way of checking if you have enough financial resources to support yourself and what amount of social assistance payment, if any, you may qualify for. In a means test the Department of Social Protection examines all your sources of income.

How do you beat the mean test?

If the most useful trick for beating the means test involves projecting health care expenses, the second most useful trick involves taxes. Tax troubles drive the filing of a large percentage of bankruptcy cases these days.

Can I quit my job to pass the means test?

Knight. As long as you aren’t quitting your job to pass the Means Test, the bankruptcy court won’t care that you quit your job. And as long your mortgage payments are received on time, bankruptcy won’t affect your house either. Once your bankruptcy…