The Means Test acts as a gate keeper for those who want to file Chapter 7 Bankruptcy, which determines your ability to repay your creditors. However, there some groups that are not required to take the Means Test to qualify for Chapter 7 Bankruptcy. Here are some examples:
1. Your Debt is Primarily Business Debt. More than 50% of your debt must be business debt.
2. You are a Disabled Veteran and incurred most of your debt while you were on full-time active duty or performing homeland defense activity. You must be rated at least 30% disabled or release from duty due to disabling injury incurred during active duty or aggravated in the line of duty.
3. You worked as a Military Reservist or National Guard and are in active duty or within the 540 days after your active duty ends if you serve for at least 90 days.
Of course, this is just an overview of who are excluded from the Chapter 7 Bankruptcy Means Test. I didn't get into details of the definition and rule. However, even if you meet the exclusion, there are other requirements that must be meet to qualify for a Chapter 7 Bankruptcy discharge. Or perhaps, the best option for you is not a Chapter 7 Bankruptcy but a Chapter 13 Bankruptcy or no bankruptcy at all. It all depends on the facts of your case, which cannot be fully explored in a website. It's more complicated than it seems. You should always consult an experienced Bankruptcy Attorney. Muoi Chea is an experienced Bankruptcy Attorney helping consumers and small business through Northern and Central California: Sacramento, Fairfield, Stockton, Vacaville, Vallejo, Benicia, Tracy, Modesto, Woodland, Davis, Yuba, Roseville, Elk Grove, Citrus Heights, CA and other nearby cities in California.