Not everyone is required to take the means test. One major exception to excuse the means test is if the debts are not primarily consumer debts. If a person debts are primarily business related, they are excused from taking the means test. There are also exceptions for military personnel in some circumstances.

The means test is also used in Chapter 13. The test is slightly different in Chapter 13 bankruptcy and allows a Debtor to include deductions for pension contributions and pension loan repayments as well as administrative expenses. In Chapter 13, the amount available after the means test calculation is used as a starting point on how much unsecured creditors should be paid under the plan. However if the Debtors schedules show that the Debtor can afford to pay more that the means test calculation, the Trustee will require the greater amount be paid.

The means test is interpreted differently in different jurisdictions and even differently among Judges in the same jurisdiction. Judges have different opinions as to what constitutes income and allowable expenses. A Debtor can affect the results of the means test in a variety of ways. The Debtors household size affects the means test. The Debtor can wait to file, if his income was substantial during the prior 6 month period and has now decreased. The Debtor may incur certain allowable expenses such as health insurance that they had previously not had.

The means test is a threshold test to determine whether a Debtor should file a Chapter 7 or Chapter 13 bankruptcy. The means test is a complex test which requires considerable analysis of a Debtors income and expenses and familiarity with its interpretation by the Trustees and Judges in the Debtor’s jurisdiction . It is wise to seek the opinion of an expert before proceeding to file bankruptcy.