Means Test Chapter 13

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Form 122A-2 is the form certain chapter 7 debtors will complete and the multiplier is entered on Line 36; Form 122C-2 is the form certain chapter 13 debtors will complete and the multiplier is entered on Line 36. Schedules of Actual Administrative Expenses of Administering a Chapter 13 Plan (as Required by 11 U.S.C. 707(b)(2)(A)(ii)(III))

Pennsylvania Bankruptcy Means Test If you would like to file a chapter 7 bankruptcy you must pass the Pennsylvania means test. The test only applies to higher income filers which means that if your income is below the Pennsylvania median for your household size you are exempt from the test and may file a Chapter 7.

In a Chapter 13 bankruptcy, the means test is not used for the same purpose; the purpose is to determine the length of the Chapter 13 debt reorganization plan.

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If you do not meet these requirements, you will need to file under Chapter 13 instead. This is commonly referred to as a means test. Basically, you will not be.

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High-income filers who fail the means test can use Chapter 13 bankruptcy to repay a portion of their debts, but won’t be able to use Chapter 7 bankruptcy to wipe out their debts altogether. However, having to take the Chapter 7 means test doesn’t mean that you must be penniless to use Chapter 7 bankruptcy.

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This form is also referred to as the Chapter 13 means test and is used to determine how long your plan will last (discussed above) and how much you must pay nonpriority unsecured creditors in your bankruptcy. Visit the U.S. Court’s website at www.uscourts.govto find the most recent version of Form 22C.