For the Chapters 7 and 13 means test, a person must average his household income for the prior 6 months.   If a means test shows that the Debtor earns less than average income for his size family, then he will automatically qualify for a Chapter 7.  

If a means test shows that a Debtor earns more than the average income, Debtors may still qualify for a Chapter 7 Bankruptcy after deductions are taken for secured and necessary expenses.  Debtors that earn less but choose to file a Chapter 13 qualify for 3 year plans provided plans are proposed in good faith. 

Use this link to download a budget for your Chapter 7 or Chapter 13.  Amounts are suggested and from 2005.   Be prepared to document expenses that are significantly above average.   This is the link to the average IRS expense amounts for  Chapter 7 13  and a copy of the  Means Test. Please see our power points on Chapter 7, and Chapter 13 and other materials to help you plan. 

There are ways to abuse the means test.  See In re Kagenveama, 527 F.3d 990 (2008).  Debtors can delay or lower income and increase expenses during the means test period in order to qualify in the means test for Chapter 7 or 36 month Chapter 13 repayment periods. 

This creates incentive for higher - income debtors "to fiddle with his expenses and income just before he presents his creditor plan for confirmation," wrote Judge Carlos Bea about means testing "So long as he can push up his expenses and delay receipt of income so as to show no 'disposable income' at the time of plan confirmation, he can propose such a short period of time that he can save any postponed income from the creditors' clutches."

The Louisville Kentucky Bankruptcy Manual fully discusses Ky Means Tests.   Download your free copy or view the PowerPoint presentations.

Your Bankruptcy Attorney isnt far from Clarksville Indiana