Pelley Law Office LLP
Dallas Office
Plano Office
Sherman Office

No Charge For Initial Consultation ($250 value)

Menu Contact

Over 80 Years Of Combined Experience

View Our Practice Areas

The Means Test

Debtors who file bankruptcy after October 2005 must undergo a Means Test analysis.  Essentially, that is a two part test.  The first half of the Means Test makes an inquiry into your "Current Monthly Income."  Current Monthly Income (CMI) is actually a term of art.  It is not necessarily what your current income is at the instant time.  CMI is the average of what your gross monthly income has been over the 6 months prior to the month in which you file the bankruptcy.

You then compare your CMI with what the IRS's guidelines indicate that most families of your size earn in the state in which you live.  Most debtors in Collin County do not pass the first part of the Means Test because most people make more around our area than other families do in Texas.

However, most of our clients pass the second part of the Means Test.  The second half of the Means Test compares your housing, utility, transportation and other necessary expenses to what the IRS's guidelines indicate are normal for a family of your size in the county in which you live.  Most of our clients pass the second half of the Means Test so that they are not required to pay any of their credit card debt in a Chapter 13 and most of the time they qualify for a Chapter 7

No Comments

Leave a comment
Comment Information

Awards & Recognition

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Locations

Plano office
Sherman office
Dallas office

Plano Office
1312 14th Street, Suite 100
Plano, Texas 75074

Phone: 972-608-0335
Map & Directions

Sherman Office
905 North Travis Street
Sherman, Texas 75090

Phone: 903-813-4778
Map & Directions

Dallas Office
100 Crescent Court
Suite 700
Dallas, Texas 75201

Phone: 214-733-1775
Map & Directions