Easily the most frequent search that leads people to this blog is, “Do I make too much money to file for bankruptcy?” Bankruptcy relief is not limited to poor people.
Generally, people who ask this question, or ones like it, know enough to have figured out that there is something generally called THE MEANS TEST; and it is scary. Well, yes.
In reality, the Means Test is a lot like a tax return; and you don’t have to have paid taxes for very many years to figure out that some people who make a lot of money don’t pay a whole lot in taxes. It sucks. It’s not fair. It is real. Welcome to the Means Test.
The Means Test sucks. It isn’t fair, and it is very real. Oh, and it is a LOT like a tax return. Yes, the Means Test starts with income — so does a tax return. Then, you get into the deductions — just like a tax return. That is where you need a CPA or a good bankruptcy lawyer.
Sure, there are lots of Means Test calculators available online. There are plenty of online tax calculators too. Neither of them is a substitute for someone who has spent real time studying the rules.
So, don’t call a bankruptcy lawyer and say, I know I make too much to file for bankruptcy. Call and say, I have more debt than I can pay; and I need to talk to someone who understands the Means Test.