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What is the bankruptcy means test?

Posted by Ellen Brown | Oct 16, 2023

The bankruptcy means test is a tool used to determine whether a person is eligible to file for Chapter 7 bankruptcy. 

The means test compares the person's income to the average income for similar people in their state. If the person's income is below the average income, they are generally eligible to file for Chapter 7 bankruptcy. If their income is above the average income, they will need to file a Chapter 13 bankruptcy.  

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