The means test was created to determine whether consumer debtors have the means to repay a significant portion of their debt. It affects whether a debtor may file Chapter 7 and obtain a discharge or whether a repayment bankruptcy such as Chapter 13 may be required.

Patrick M. Hunter helps Wyoming clients understand the means test before filing, because one fact can change the analysis. Household size, income timing, allowable deductions, expenses, and the type of debt all matter.

Means Test Services

The means test has two stages. Patrick helps clients evaluate both stages and what the result means for their options:

• Median Income Review: Comparing household income to the median income for a household of the same size in Wyoming.
• Disposable Income Analysis: Reviewing allowable deductions and whether income remains available to pay unsecured creditors.
• Chapter 7 Eligibility: Determining whether the means test creates a presumption of abuse or allows Chapter 7 to proceed.
• Chapter 13 Planning: Understanding when the means test affects plan length, projected disposable income, and required payments.
• Income Timing: Reviewing the six-month income period before filing and how changes in job, bonuses, divorce, disability, or household income may affect the calculation.
• Debt Classification: Determining whether the case is primarily consumer debt and whether the means test applies.

The means test is a legal calculation, not just a budgeting exercise.

How the Means Test Works

The first stage calculates gross household income for the six months before filing. If the household income is below the state median for the household size, the debtor may generally file Chapter 7 if otherwise eligible.

• Below Median: Chapter 7 may be available, subject to other eligibility and good-faith requirements.
• Above Median: A second calculation applies IRS-based and other allowed deductions.
• Disposable Income Result: If disposable income is high enough, Chapter 7 may not be available and Chapter 13 may be required.
• Other Factors: Prior bankruptcy filings, recent dismissals, non-dischargeable debt, and property goals still matter even if the means test is passed.

Why Means-Test Advice Matters

People often assume they do or do not qualify for Chapter 7 based on a rough income number. That can be misleading. The legal calculation may include household income, allowable expenses, secured debts, taxes, support obligations, and timing details that are not obvious.

• Avoid Filing Mistakes: Filing the wrong chapter can create cost, delay, or dismissal risk.
• Choose the Right Chapter: A client may pass the means test but still need Chapter 13 for property, tax, or secured-debt reasons.
• Plan Before Filing: Timing may matter when income has recently changed.
• Understand the Consequences: Clients should know why Chapter 7 is available, risky, or unavailable before moving forward.

Schedule a Means-Test Consultation

If you are unsure whether you qualify for Chapter 7 or need Chapter 13, call 307-235-1900 or message the firm online.

Bring pay information, benefit income, business income, household size details, tax obligations, secured-loan information, and a debt summary.

"If a debtor has enough disposable income, the available bankruptcy options may change. Clients need that answer before filing."