In Chapter 7 and Chapter 13 cases involving consumer debt, bankruptcy filers are required to submit a two part income analysis. This analysis is called a “means test” and is designed to qualify you for either Chapter 7 or Chapter 13.
The first part of the means test is called the “median income review” and it requires us to calculate your average gross monthly income. In order to calculate your average income we will need proof of income for the current month as well as the past six months. If you have pay stubs (also known as pay advices), we will need copies of those. If you do not have all of these pay stubs, please provide us with what you have and provide us with the gross and net income figures for the stubs you are missing.
If you are married or live with someone else who works, you need to include that person’s gross income information as well. Don’t worry – you can later back out of the calculation a non-filing spouse or roommate’s non-household contribution.
Depending on the results of the median income test, you may or may not need to proceed to an expense analysis that is the second part of the means test.
Therefore, if you want to get started early, begin collecting your pay stubs from the past seven months and get this information to us as soon as you can.