Oklahoma income based bankruptcy means test sets income limits for chapter 7. In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCA) came into being. The law requires that you pass the Means Test in order to qualify for certain chapters of bankruptcy. The Bankruptcy Means Test compares your monthly income to the median income in Oklahoma. It takes the last six months of income and multiplies it by two. The product of this calculation is your yearly income.
Income Based Bankruptcy Means Test:
The bankruptcy Means Test is a straightforward comparison of your current monthly income to that of the state’s median income. The test accounts for your family size. The median family income is a figure from the Internal Revenue Service. Its based on your state of residence. If your current monthly income is less than Oklahoma’s median family income then the presumption of abuse doesn’t arise. Its avoiding this presumption of abuse that allows you to qualify for chapter seven.
It’s important to understand that income for the purpose of means testing isn’t necessarily equal to actual income. Rather, your current yearly income is based on the average monthly income received from all sources during the six (6) months. This average income is calculated by averaging the filer’s last six months income and projecting it forward.
What Income is Too High:
The median income for your state is an income limit in accordance with household size. Consult with an attorney experienced in Oklahoma’s bankruptcy laws as to what the current applicable median income is for your household because these numbers are subject to change periodically. For Mean’s Test purposes, your income figures by averaging the last six months of pay stubs or other evidence of income for the six months immediately prior to filing and projecting it forward for a year. Once you’ve provided pay stubs or other evidence of income for the prior 6 months, our attorney will compare your average monthly income to the applicable median family income. If your income is greater than the state’s median income you may not be able to file a Chapter 7. If this is your situation there are still other options. One of those options is filing a chapter 13 bankruptcy.
There’s a few circumstances which might allow you to pass the means test for the purpose of filing chapter 7. This is even true if your income is too high. Those circumstances are narrow. They involve a glimpse at your monthly expenses and doing a secondary means test. There’s also some forms of income that aren’t in the test.