In 2005, the bankruptcy code was amended.  As part of the amendment, congress added means testing.  It was intended to limit high income chapter 7 bankruptcies.  In reality, it only affected a small number of bankruptcy cases.   There are two prongs to the means testing formula.  Prong one is base on your gross income for the last 6 months.  That amount is doubled (resulting in annual income).  If your income is below the state of Michigan annual income, you qualify for chapter 7 bankruptcy and you “pass the means test”.  The income level goes up as the number of members in your household goes up (people who are living at your house, not tax dependants).  If you do not pass prong one, you have a second chance with prong two (for people who are close).  Prong two gives you certain deductions (like tax deductions) and then compares your available money to pay creditors.  The means testing income amounts are adjusted twice a year.  Currently the means testing amounts are as follows:

One person = 44, 072.00 annual income

Two persons= 52,540.00 annual income

Three persons= 61,110.00 annual income

Four persons= 74,863.00 annual income

*8,100.00 dollars for any additional persons.

What if My Income Exceeds the Means Testing?

Often times, selecting the right months to use for income will allow you to pass the means testing (if you have seasonal income or end of year bonuses).  If you cannot pass the means testing, you still qualify for chapter 13 bankruptcy which can get you extensive debt relief and may work better for your situation.  Call us for further information on means testing.

When you need a Grand Rapids Bankruptcy Attorney, remember to call Krupp Law Offices PC for fast honest advice about your financial problems and get honest advice about your options.  Krupp Law Offices represents clients in cases throughout West Michigan, including the cities of Grand Rapids, Kalamazoo, Big Rapids, Ionia, Muskegon, Grand Haven, Stanton, Greenville, Wayland, Allegan, Holland, Ludington, Cadillac, Baldwin, Newaygo, White Cloud, Fremont, Coopersville, Reed City, Lake City, Hart, Hastings, Middleville, Wyoming, Rockford and Portage, including Kent County, Ottawa County, Newaygo County, Ionia County, Mecosta County, Barry County, Montcalm County, Allegan County, Kalamazoo County, Osceola County, Lake County and Muskegon County, Michigan.

Call for a free phone consultation.  Our office can help.

161 Ottawa NW Suite 404
Grand Rapids MI 49503
616-459-6636 or

Other Bankruptcy Topics

Keywords: Grand Rapids Bankruptcy Lawyer, Grand Rapids Bankruptcy Attorney, Grand Rapids Foreclosure Lawyer, Bankruptcy Attorney Grand Rapids MI,,Bankruptcy Lawyer Grand Rapids MI, Bankruptcy Lawyers Grand Rapids MI, Wyoming Bankruptcy