Bankruptcy Means Test

Must Qualify for Nevada Bankruptcy

This chart shows how an average household income plays into the means test. If your current monthly household income is less than the Nevada median income, you can presume that you would pass the means test and be eligible for Chapter 7 bankruptcy. Pay attention to the number of members in a household.

Average your monthly income over the last six calendar months. This will determine your average household income. It is possible that if you are right now over the median income, but your income has gone down over the last six months, maybe waiting one or two months might bring that average under the median level. For the purposes of the Nevada median income test, when you find your average monthly income, multiply the number by twelve for your annual income.

Passing The Means Test in Nevada

Passing the Nevada means test means that you may file for chapter 7 bankruptcy protection. Therefore, what a means test compares your income with the median income for Nevada.  If your current monthly household income is less than the Nevada median income for a household of your size; you should then qualify to file chapter 7 bankruptcy.

Failing the means test would only allow filing chapter 7 bankruptcy under very specialized exceptions. Thus, an alternative with a failed means test would be to file a chapter 13 bankruptcy and repay a portion of your debt to your creditors.