Consumer And Non-Consumer Debts
Call: 888-297-6203 The means test is a series of calculations based on the debtor's household size and income to determine whether the debtor can file for chapter 7 bankruptcy. The test only applies to debtors who primarily have "consumer debts" as opposed to business debt. If more than half of the people have non-consumer debt or business debt then they don't have to pass the means test to apply for chapter 7 bankruptcy. What are consumer and non-consumer debts? Section 101(8) of the Bankruptcy Code defines a consumer debt as "debt incurred by an individual primarily for a [...]