Means Testing

Under the 2005 bankruptcy law, a statutory means test is used to determine what income the debtor should devote to repaying debts. Applicable both to chapter 7 and chapter 13, the means test first compares a debtor's household gross income to the North Carolina median, and if above that median, then applies series of expense allowances loosely associated with the debtor's actual expenses.

Related Cases

Some Means Testing cases in our case summary collection:

  • In re Sterrenberg, No. 11-08543-8-RDD (Bankr. E.D.N.C. May 18, 2012) (debtor may not deduct on the chapter 7 means test a debt secured on property the debtor intends to surrender)
  • Lynch v. Haenke, 395 B.R. 346 (E.D.N.C. 2008) (affirmed bankruptcy court that debtor could deduct surrendered property on chapter 7 means test when still contractually liable)
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