Understanding the Chapter 7 Means Test in Hershey

The means test compares your household income to the median income for a similar household size in Pennsylvania. If your average income over the past six months is below that median, you typically “pass” the test and are presumed eligible for Chapter 7.

If your income is above the median, you don’t automatically fail. Instead, the test moves to a second stage where your allowed expenses (things like housing, food, utilities, car payments, taxes, and some other necessary costs) are subtracted from your income to calculate your disposable income. If there’s little or no disposable income left to pay unsecured creditors, you may still qualify for Chapter 7.

How the Means Test Works for Hershey Residents

For individuals and families in Hershey, the means test is applied using federal formulas and guidelines, but your real-life numbers matter. The calculation looks at:

• Your last six months of gross income (from wages, self-employment, side work, and some other sources)
• Household size and certain local standards for living expenses
• Secured debt payments, like mortgages and car loans
• Priority debts, such as certain taxes and support obligations

Even small differences in how income or expenses are treated can change the outcome. That’s why having an experienced Hershey bankruptcy attorney review your finances is so important before you assume you “make too much” for Chapter 7.

Why the Means Test Matters in a Hershey Chapter 7 Case

Passing the means test can open the door to a true fresh start by allowing you to:

• Discharge qualifying credit card, medical, and personal loan debts
• Stop collection calls, lawsuits, and wage garnishments
• Move forward without a multi-year repayment plan

If the means test shows too much disposable income, Chapter 13 may still provide powerful protection and structured debt relief. The key is understanding which path fits your situation and long-term goals.

Talk to a Hershey Bankruptcy Lawyer at Audi Law PLLC Today

If you’re worried about whether you qualify for Chapter 7 or confused by the means test, you don’t have to sort it out alone. Audi Law PLLC in Hershey can review your income, expenses, and debts, walk you through the means test step by step, and explain all of your bankruptcy and non-bankruptcy options.

Call Audi Law PLLC at 717-707-5611 or contact the firm online to schedule a consultation. Take the first step toward clarity and a financial fresh start today.