Expert: Mark J. Markus- California Bankruptcy Attorney - 1/6/2010

Question
What does the means test mean in a Chapt 13? For example, after completing the means test for Chapt 13, it shows I have $1500 of disposable income. I also must submit a payback plan to the trustee which shows I have less disposable income than the means test. My very legitimate plan shows that I can only payback $500 per month to the creditors in the plan, while the means test shows $1500 in disposable income. What is the likely response/reaction from the trustee?

Answer
Hello.  First of all, technically there is no means test in a Ch. 13.  I assume you are referring to Form 22C.  (Form 22A is the means test form).  Anyway, under the new laws passed by Congress in 2005, as interpreted by case law, the figure that Form 22C shows as the "Disposable Income" amount, is the amount you must pay per month to your creditors (usually 60 months if you are over the median income).   This amount can be increased if your Schedule "I" and "J" budget is showing a higher surplus.

That having been said, different courts have interpreted these requirements differently, so you need to consult with an attorney in the jurisdiction where your case was filed.

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