Alabama Means Test
On this page you will find information regarding the Alabama means test.
The new bankruptcy laws enacted in 2005 require that debtors pass a means test, the standard used to determine if a presumption of abuse arises when a person files Chapter 7 bankruptcy.
There are two ways to pass the means test:
1. the debtor's annual income (calculated using the average gross income for the six month period prior to filing) must be below the state median.
Census Bureau statistics for state median income by family size can be found here.As of this writing, census statistics show the following information for Alabama:
Number in Household |
Median Income |
1 person |
$36,870 |
2 people |
$46,647 |
3 people |
$53,093 |
4 people |
$63,951 |
5 or more people |
Add $6,900 for each individual exceeding 4 |
2. If income exceeds the median income, individuals may still file Chapter 7 bankruptcy based on results of
Form 22A: Chapter 7 Statement of Current Monthly Income and Means-Test Calculation .Contact an Alabama bankruptcy lawyer for more information regarding means testing.
