The Means Test: Determining if You are Eligible for an Arizona Chapter 7 Bankruptcy

Chances are that you have come across Official Bankruptcy Form 22A while researching filing for bankruptcy, but do you know the important purpose this form serves? Form 22A requires you to enter income and expense information, and from this, you will be able to determine whether or not you are eligible to file for Chapter 7 bankruptcy.


This form, more commonly known as the means test, is designed to filter out debtors whose income (or lack thereof) does not allow for the repayment of existing debt. It looks at your CMI, or current monthly income, which is determined by averaging the previous six months of your income prior to your bankruptcy filing. After subtracting monthly expenses (which are based off of IRS guidelines), you are left with a monthly disposable income. The less disposable income you are shown to have, the more likely you will be approved to file for Arizona Chapter 7 bankruptcy protection.


You may, however, pass the means test before your disposable income is even determined. If your income is less than that of the median income in Arizona for a household of your size, you are automatically eligible to apply for a Chapter 7 bankruptcy.


If you do not pass the Chapter 7 means test, you are still able to file for a Chapter 13 bankruptcy. Sometimes, despite passing the means test, filing for Chapter 13 bankruptcy remains a better option for your particular situation. By speaking with an Arizona bankruptcy attorney, you can evaluate your financial situation and determine what your best course of action will be.


The Phoenix bankruptcy attorneys at Curry, Pearson & Wooten are here to help you improve your financial outlook in both the short and long term. Call us at 602-258-1000 to speak with a lawyer today.

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