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Getting Around the Means Test

If I were your attorney I couldn’t advise you on how to get around the means test with a few maneuvers the bankruptcy code doesn’t specifically forbid. Since I’m not your attorney I’m going to share some of these tips with you for informational purposes only. These are loopholes that are available to be taken advantage of if you are aware they exist, and again this is the very reason you are reading this site. So if you are not sure about where you stand regarding the means test , or you want to make sure that you can pass it and are borderline as far as your income goes, pay attention to the following:

Timing:

You can time the filing of your bankruptcy to lower your average income. For example if you just lost your job last month you can wait five months to file your bankruptcy which would give you a one month average for employment, or you can wait six months and not show any income for six months as you have been unemployed. Again all of this will depend on your situation and whether or not you can wait. But nevertheless the loophole is there for you to use and is perfectly lawful. You can also take an unpaid leave of absence from work technically to reduce your six month income.

Household Size:

The means test uses how many people live in your household according to the census bureau. Your household will consist of all the people who occupy your home. This includes the related members and all the unrelated people, like roommates, foster children or any other unrelated friends that live your household. Remember the more people in your household the more money you would be allowed to make and pass the means test. For example if you have a two household family in a state A it might allow for you to make $45,000 and less, and for three people it would be $50,000. So here are little loopholes and situations you can put yourself in to help you pass.