Chapter 7: Means Test, Credit Counseling, and Debtor Education Information
Below you will find in-depth information from the U.S. government on "means test" eligibility, credit counseling, and debtor education requirements for Chapter 7 bankruptcy filers. These requirements came about as a result of changes in bankruptcy laws that took effect in October of 2005. This page will be updated as new information on bankruptcy filing requirements and procedures becomes available.
The "Means Test" and Eligibility for Chapter 7
Under the new bankruptcy law that went into effect in October of 2005, bankruptcy applicants who wish to file under Chapter 7 must meet certain eligibility requirements based on a "means test." Under the "means test," if your current monthly income is less than the median income in your state, you can file for bankruptcy under Chapter 7. The link below from the U.S. Trustee Program (a branch of the U.S. Department of Justice that is responsible for overseeing bankruptcy cases) provides more information on the "means test" -- including links to income figures and other information you will need in order to determine eligibility for Chapter 7.
Credit Counseling and Debtor Education
As part of the new bankruptcy laws, people wishing to file for bankruptcy (under Chapter 7 or Chapter 13) must now complete a credit counseling program before they will be allowed to file a bankruptcy petition. In addition, bankruptcy filers must obtain debt management counseling before being allowed to complete the bankruptcy process. In order to comply with these credit counseling and post-discharge debtor education requirements, filers must work with agencies that have been approved by the U.S. Trustee Program (a branch of the U.S. Department of Justice that is responsible for overseeing bankruptcy cases). Below are links to information on credit counseling and debtor education, and two lists of agencies that have been approved by the U.S. Trustee Program -- the first a list of agencies that provide pre-filing credit counseling to those wishing to file for bankruptcy, and the second a list of agencies that offer post-discharge debtor education to people who are completing the bankruptcy process. The third link below includes tips on choosing a credit counselor, from the Federal Trade Commission (FTC).
