Means Test for Chapter 7 Bankruptcy in Idaho
The BAPCPA required that you pass an income test to file Chapter 7 Bankruptcy. The income test will analyze your median income and determine if it is above of below other similarly sized Idaho families. If your median income is above, additional means testing will have to be done. If your income is below, you most likely will be able to file Chapter 7 Bankruptcy. The goal of the BAPCPA was to increase the number of individuals who would be required to repay all or most of their debt by encouraging them to file Chapter 13 Bankruptcy.
Means testing will analyze your net income and determine how much disposable income you have which could be used to repay your debts. To find this figure, you subtract certain allowable expenses such as your car payment, house payment, child support, taxes owed and $1650 of school tuition. If the remaining amount allows you to pay $6,000 or $100 per month over the next 60 months toward debt payment, you may not be able to file Chapter 7 Bankruptcy. If you can not do this, but you could pay 25% of your remaining income to your creditors over the next 60 months, you may not be able to file Chapter 7 Bankruptcy.
The information provided here is very general and is not considered legal advice. An Idaho Bankruptcy Attorney should be contacted to determine if you can file Chapter 7 Bankruptcy in Idaho.
State median data is provided by the United States Trustee Program. For the State of Idaho, after March 15, 2009, the median income for a single wage earner is $40,910 and for a family of two it is $51,946. For a family of three it is $54,633 and for a family of four it is $66,939.
