The income test reviews your median income over the last six months and compares it to other Maryland families of equal size. If you median income is less than other Maryland families, you may file Chapter 7 Bankruptcy. If your income is more than other Maryland families, you will have to pass more "means testing".
The goal of means testing is to determine if you have enough disposable income to repay your unsecured debt. To determine this, you will take your net income and subtract pre-determined expenses including your mortgage payment, automobile payment, school tuition (up to $1650), taxes owed and child support. If after this calculation is made you can pay $6,000 ($100 per month) in debt repayment over the next 60 months, you may not be able to file Chapter 7 Bankruptcy. If you fail this test, but you could pay 25% of you disposable income in debt repayment, you may not be able to file a Maryland Chapter 7 Bankruptcy.
Means testing can be complicated and the information provided above is very general. It is a good idea to discuss your income and expenses with a qualified Maryland Bankruptcy Attorney who can help you determine if you can qualify for Chapter 7 Bankruptcy.
Maryland's median income is published by the United States Trustee program in the State Median Income List. For the state of Maryland, after March 15, 2009, the average median income for a single wage earner is $55,543. For a family of two it is $73,947 and for a family of three it is $84,952. For a family of four it is $103,719.