But if your debts are not primarily consumer debt, then you don’t have to take and pass the Median Income Test. Other limited exceptions may apply as well.
If you pass the “Median Income Test”, then you don’t have to pass the Means Test.
Under the Median Income Test, you calculate your “median income” (using government statistics) and compare it to the median income for a similarly sized family in your State.
If your average monthly income is less than the average monthly income for a similarly sized family, you pass the Median Income Test, do not have to pass the Means Test, and, in most cases, you may “pass go” and file a Chapter 7 bankruptcy.
Note: The Median Income Test also has ramifications for Chapter 13 filers as well.
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