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The main goal of the means test is to require higher earning debtors to pay back some or all of their debt in Chapter 13, rather than allowing them to discharge their debt in Chapter 7. Although Chapter 7 filers may lose any property they can’t protect with an available exemption, they don’t have to directly repay any debt.
If you are filing for Chapter 13 bankruptcy, you do not need to complete the means test. However, you do need to complete a form almost identical to it – and that will determine how much you must pay in a Chapter 13 plan.
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When you file for Chapter 13 bankruptcy, there is no "means test" to determine whether your income is too high. In fact, opposite forces are at work in Chapter 13 — if your income is so low that you cannot fund a repayment plan , you won’t be eligible for Chapter 13.
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Minnesota Bankruptcy Means Test If you would like to file a Chapter 7 bankruptcy you must pass the Minnesota means test. The test only applies to higher income filers which means that if your income is below the Minnesota median for your household size you are exempt from the test and may file a Chapter 7.
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Failing the means test does not mean you can’t file bankruptcy. It simply means that Chapter 7 is not available, now. You can file one of the reorganization chapters, 11 or 13; or you can adjust your income and debt situation to increase the likelihood you pass the means test later.
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