Since yesterday, I’ve been going through my bank account and making line entries with any money I received. It’s becoming very granular now, like $70 from Google or things like that. The attorney asked that I present him with 6 months of income. That’s not the problem. It’s the side gig’s I mentioned that concern me. So in the six month span I can easily show one half of my yearly income plus an additional $7,046.33.

So does this put me a bad spot? What about the means test? So I have a call into the attorney to find out more. In the mean time, I’ve been doing research about the “means test”. In 2005, the United States changed its bankruptcy laws, adding the means test to prevent the wealthy from taking advantage and filing for Chapter 7. The bankruptcy means test is rather complex (from what I’ve read), but somewhat generous. Based on what I’ve read and what the attorney told us on our initial consultation, we shouldn’t have any problems. The means test is used by the courts to determine eligibility for Chapter 7 or Chapter 13 bankruptcy.

You can view and or download the means test, forms 22a or 22c from the US DOJ (Department of Justice) website. These forms help you layout your monthly income and also have calculators. I’m going to leave this part for my attorney to deal with. I’m having a hard enough time tracking and matching every small check I deposited into my account.

I’m even nervous about rebate checks that I’ve received from Staples and Office Max.

Don’t get me wrong when I say checks and money I’ve received. I do/did everything I can and could to support my family. Well, short of a pyramid scheme that is. I do have a fond interest in Affiliate Marketing. I’m just not that good at it, yet.

So the means test is a pretty scary thing. The government wants to forecast the next five years of income. They also will factor in what the IRS determines to be “living expenses”. Here’s where it can become an issue. They may deem that your electric bill should only be $100 per month, when in fact you can’t possibly shut one more light off to get it below $250. So even if you think you are “safe,” and are able to file Chapter 7 because you don’t have $100 per month to spare, the court may rule otherwise and force you into Chapter 13. Some of your actual expenses may be disallowed.

I hope to have my excel spreadsheet to the attorney within the next day or two. I would like to spend the holiday without a huge knot in my stomach… if possible.

- Average Joe

Links related to this article:

• http://www.usdoj.gov/ust/eo/bapcpa/meanstesting.htm
• Form 22a - Caution, this is a downloadable file
• Form 22c - Caution, this too is a downloadable file
• Median Family Income by Number of Earners in Family