If your income is higher than the Wisconsin median you will need to complete the means test calculation to determine if you can pay back a portion of your unsecured debts through a chapter 13 bankruptcy. Means Test Exemptions. If your debts are not primarily consumer debts then you are exempt from the means test.

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(Those who fail the means test, are left with a Chapter 13 repayment plan as their only bankruptcy option.) The means test is actually a two-part test and you only need to pass one of them to qualify for Chapter 7.

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Official Form 122C-1 (Statement of Your Current Monthly Income and Calculation of Commitment Period) and Official form 122c-2 (chapter 13 Calculation of Your Disposable Income) (collectively the "122C Forms") are designed for use in chapter 13 cases.

Chapter 13 Means Test & Bankruptcy Eligibility For Chapter 13 bankruptcy there is not a means test to test your income like there is in a Chapter 7 bankruptcy. Instead, your income must be high enough, rather than too low, in order for you to be able to fund the required repayment plan .

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If your income is higher than the Washington median you will need to complete the means test calculation to determine if you can pay back a portion of your unsecured debts through a Chapter 13 bankruptcy. Means Test Exemptions. If your debts are not primarily consumer debts then you are exempt from the means test.

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If you don’t pass the means test, you’re limited to using Chapter 13 bankruptcy, which requires you to make monthly payments over a three- to five-year period according to a strict budget monitored by the court. Most people who file for bankruptcy prefer Chapter 7, which requires no repayment.

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Why the means test doesn’t apply (sort of) in chapter 13. When most people think of the means test, they think of filing a chapter 7. They think of passing or failing the means test. Of being able, or being unable, to file a chapter 7 bankruptcy. But the means test functions very differently in chapter 13.

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