Means Test, Calculation of Monthly Income

Under the bankruptcy code, there is a math test called the Means Test that will determine whether or not you are eligible for a Chapter 7 or if you must file a Chapter 13 bankruptcy. How do you calculate monthly income? The following are included in the calculation of that monthly income:

1. Gross wages: salary, tips, bonuses, overtime, commissionsmeans test bankruptcy
2. Income from the operation of a business, possession of a farm
3. Rent and other real property income
4. Interest, dividends and royalties
5. Pension and retirement income
6. Regular contributions to household expenses
7. Unemployment compensation
8. Income from other sources including disability payments, income tax refunds, liquidation of an asset and mileage reimbursement.

Once the monthly income is calculated, a determination is made as to whether or not your income is above or below the median income. That will depend on the state you live in and your household size but can also be adjusted for your martial status.

Determining whether or not you are eligible for a Chapter 7 or Chapter 13 bankruptcy by the Means Test can be a difficult math calculation. You can learn more about whether or not you qualify for a Chapter 7 or Chapter 13 bankruptcy by contacting Sunshine State Bankruptcy for a free no obligation consultation.

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