Answer: In 2005, the bankruptcy laws were changed to require all chapter 7 debtors to pass a means test before they can file.
The details are complicated, but in layman’s terms the means test has two stages. The first stage is a median income test. If a debtor’s household makes less money than the median income of the area, then the debtor passes the test and does not have to do the second stage.
If however, the debtor’s household makes more money than the media income of the area, then the debtor’s household and other required expenses are examined closely to see if they pass a certain set of criteria. Debtors who pass this second stage are still eligible to file a chapter 7 bankruptcy. Debtors who fail this test are not able to file chapter 7, however many instead choose to file a chapter 13 bankruptcy or to delay filing a chapter 7 until they would pass the test.
The good news is that most Oklahomans will pass the means test with flying colors. For example, as of November 1, 2010, the yearly Oklahoma median income for a family of 4 is $63,004.
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