The means test now required in almost all consumer bankruptcy cases is complex, requiring detailed information about the debtor’s income over the past six months, secured and priority debts, monthly expenses, and more. Best Case Solutions recognizes that attorneys need a means test that simplifies the calculations, puts applicable Census Bureau income figures and IRS expenses at their fingertips, and allows them the flexibility to test the limits of the new law.
At the start, the Best Case Means Test Calculator asks a few questions about the debtor (such as the location of residence, household size, and income) to determine which IRS and Census Bureau numbers apply. We'll automatically look up and fill in the applicable state median for your debtor. Proprietary research by Best Case Solutions shows that more than 85% of current Chapter 7 debtors have income below their state medians for their household size*, so for most cases, the full means test will not need to be completed and the debtor can file Chapter 7 without the presumption of abuse.
To assist you in inputting the debtor's income into the Means Test, Best Case® Bankruptcy includes the Current Monthly Income(CMI) Calculator. The CMI Calculator allows you to easily enter and define your debtor's income and determine if there is a presumption of abuse. The CMI Calculator will then input the income into its proper field in Form 22. Negative income from a business or property will also be factored in.
But for the remaining 15%, that will complete the full Best Case Means Test Calculator automatically fills in applicable IRS living, housing, and car allowances, giving you a running total of how much disposable income the debtor has as you work. It handles all the math for you and transfers claim information from creditor schedules to the means test, clearly displaying each step involved and the outcome of the test.
To access the Means Test Calculator, simply open a client file then open Form 22. (For many debtors - those with income below median - you can start with the Means Test before filling out other forms. This will allow you to simply compare income with the median before filling in all case information.) Licensed users can print all applicable Means Test/Current Monthly Income/Disposable Income forms (22A, 22B, and 22C), and can modify these in the Best Case Editor if needed.
Be sure to read our Means Test Booklet to see step by step instructions on completing the Means Test with Best Case Bankruptcy.
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