Means Testing

The Birmingham Bankruptcy Attorney at Over the Mountain Law Center, in Homewood, Alabama, invites you to visit the United States Department of Justice’s website at for a list of some of the standard deductions that you can claim on the Means Test in your Chapter 7 Bankruptcy Case. The expenses listed on the website are just some of the expenses that Debtors whose income is above the median for the geographic area will get to claim as deductions from their gross income in their Chapter 7 Bankruptcy Case.

What are some other typical expenses?

Other typical expenses that you may be able to claim as deductions are:  taxes deducted from your paycheck or estimated taxes that you are required to pay; the costs of health or accident insurance; the costs of term life insurance; child care expenses; mandatory 401(k) loan repayments; required retirement contributions; court ordered child support or alimony payments; payments toward back taxes; ongoing charitable contributions; payments made as continuing support of an elderly or chronically ill family member. This is just a short list of the some of the types of expenses that can be deducted from your gross income. You might be entitled to others, depending on your particular circumstances.

Consequently, even though your gross income significantly exceeds the median income for the geographic area for your family size, you will probably be able to demonstrate that you are eligible to file a Chapter 7 Bankruptcy Case because of your particular expenses.

Get a free initial bankruptcy consultation

Contact the Birmingham Bankruptcy Lawyer today at 205-870-8480 to set up a free consultation. We will get you over your mountain of debt!