The length of your bankruptcy repayment plan is determined by this Means Test. Learn more about the form below.
Chapter 13 Bankruptcy Means Test
The length of your bankruptcy repayment plan is determined by this Means Test. Debtors who file Chapter 13 Bankruptcy must complete Form B22C. This form allows the debtor to calculate their average monthly income for the 6 month period prior to the month before filing their Chapter 13 Bankruptcy.
Form B22C helps the debtor calculate the amount they must pay in their Chapter 13 Bankruptcy and the length of the repayment plan (either 3 or 5 years).
The means test calculates the debtor’s median income for a household. If their median is below the standard, they can repay their debts in 3 years. If their income is higher than the median standard, they can pay their debts in five years.
Under certain conditions, the court may allow below median income debtors to increase the length of their plan. Above median income households may also shorten their plan payment period if they pay 100 percent of the debts owed to their general unsecured creditors.
See our Bankruptcy State Law pages to get a better understanding of the Means Testing in your State.
More Help on Completing the Chapter 13 Bankruptcy Means Test