If You Don't Pass the Means Test

If you don't pass the means test, you are limited to using Chapter 13 bankruptcy, which requires you to make monthly payments over a five-year period according to a strict budget monitored by the court. Most people who file for bankruptcy prefer Chapter 7, which requires no repayment. However, Chapter 13 is still the best way to handle specific types of problems, like curing a default on a mortgage. (See Reasons to Use Chapter 13 Instead of Chapter 7.)