Massachusetts Means Test

When a person is considering filing for Chapter 7 bankruptcy in Massachusetts, they’ll have to pass something referred to as the Chapter 7 means test. Simply put, this test is designed to help make sure that the right people are claiming Chapter 7 bankruptcy, a form of debt recovery that’s meant for someone who is unable to pay off their debts and simultaneously cover essential living costs.

In Massachusetts, the means test has specific thresholds that define how much money a person can make and file for Chapter 7 bankruptcy in the state. The thresholds are based on a household’s income and how many people rely on that income. If a person makes more than the means test allows, they are unable to file for Chapter 7 bankruptcy in Massachusetts. Instead, they should explore other options such as Chapter 13 bankruptcy.

As of May 1, 2020, these are Massachusetts income requirements to file for Chapter 7 bankruptcy:

• Household of 1: $67,119
• Household of 2: $84,125
• Household of 3: $108,130
• Household of 4: $134,418
• Household of 5: $143,418

If there are more than four people living in a home, simply add $9,000 to the previous income requirement to determine how much you can make and still qualify for Chapter 7 bankruptcy. For example, a household of 10 would have to make $188,418 to qualify.

If your income is over the means test, other factors might enable you to file for Chapter 7 bankruptcy. Various costs of living can be used to calculate your eligibility and, if you have a low enough income, you might qualify for Chapter 7 bankruptcy in Massachusetts.

Things considered in a Massachusetts means test include:

• Paycheck deductions
• Healthcare
• Child support
• Alimony
• Childcare
• Home utility bills
• Taxes
• Charitable expenses

Do I Need a Lawyer for My Chapter 7 Bankruptcy Filing?

Yes. Hiring a bankruptcy lawyer will help you explore your options, make the right decision, and ensure that the process is being handled by a professional during every step. Bankruptcy is an important form of financial recovery, and your future deserves the experience of a person familiar with the laws concerning it.

A Massachusetts Chapter 7 bankruptcy lawyer can help with the following:

• Petitioning the court
• Filling out forms
• Organizing assets
• Organizing finances
• Meetings with creditors
• And more

Importantly, one of the payment methods Chapter 7 bankruptcy uses is the liquidation of assets to settle debts. An attorney will work with you to determine what property of yours is protected by the law so you can make sure the process is as fair as possible.

Massachusetts Means Test Exemptions

If your debt does not consist primarily of consumer debts, you might be exempt from the means test. Additionally, specific groups of people such as veterans who’ve incurred their debt during active duty are exempt from the means test.

Our Massachusetts Chapter 7 Bankruptcy Lawyers Are Ready to Help

Working with the Massachusetts bankruptcy lawyers from Miller Law Group, P.C. means working with a team that cares about your future. Our mission is to support clients as much as possible, especially during the challenging moments they face during a bankruptcy filing. Each week, our team meets to discuss cases and provide collaborative perspective. This way, our clients always have the experience of multiple attorneys benefiting their case. We know that this process is difficult, and we are ready to help you work toward a future of financial freedom.

Call our team now at (888) 874-2142. An initial consultation with our Massachusetts Bankruptcy lawyers is free of cost and obligation to help you discover your options.