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How Does Household Size Affect the Means Test?

When someone files for Chapter 7 bankruptcy, they have to fulfill a basic requirement known as the means test. This requirement takes their income and compares it to the average income in the state. If their income is less than that average, they can file for Chapter 7 bankruptcy protection. However, there are many factors that can also affect how eligibility is determined in the means test. For example, household size can play a major role in the process.

If you’re considering pursuing bankruptcy due to overwhelming debts and other factors, we may be able to help you. For more information regarding your options, contact the Joliet Chapter 7 bankruptcy lawyers of the Law Offices of Stuart B. Handelman, P.C., today by calling 815-722-2201.

Who Counts as Part of a Household?

Those in charge of a large household may be given special consideration during the means test. After all, a higher income will be expected if more people need to be cared for with that money. A head of a household may count the following people as a part of their household for the means test:

  • People they pay a significant amount of money to support at home
  • People counted as dependants for tax purposes
  • People counting the house as their primary residence

There’s no exact science for determining household members. Some bankruptcy courts will use different parameters to figure out whether a person is actually a member of a household or not. However, these three factors are the most commonly considered.

Contact Us

Bankruptcy can be a powerful solution to debt issues that the head of a large household may need to think about as a means to move forward for their family’s sake. To learn more about this process and how it may help you, contact the Joliet Chapter 7 bankruptcy attorneys of the Law Offices of Stuart B. Handelman, P.C., at 815-722-2201 today.