Bankruptcy Lawyer Mark BuckleyLogo
Attorney
MARK BUCKLEY
Bankruptcy & Estate Planning Law

401-467-6800
TAP TO CALL
Free
Free Consultation
Make a Payment
  • Home
  • About
  • RI Bankruptcy
    • Forms
  • Estate Planning
    • Forms
  • FAQ
  • Contact
  • Blog
  • Locations
    • Warwick
    • Providence
  • Forms
  • Free Consultation
We will refund the attorney fee if your case is dismissed without receiving a discharge. More Info...
Mark Buckley Attorney Banner

RI Bankruptcy Means Test

by Mark Buckley

Since 2005, the bankruptcy “Means Test” has been used to determine who qualifies for  Chapter 7 bankruptcy relief here in Rhode Island.  It acts as a “gatekeeper”.  The Means Test attempts to measure the cost of living in Rhode Island and how your gross income compares to that of other families of the same size.

The test is arbitrary and has had some unfair results.

For each state, the census calculates the median (middle) gross income for all family sizes.  A person filing for bankruptcy must then show all the gross income generated in their household for the prior 6 months, double it, then compare that number to the census figure.

If their gross income falls below the census figure, they pass the means test and can move forward.  If their gross income is higher than the census figure, the process gets very complicated and can prevent a debtor from filing a Chapter 7 case.

Failing the Means Test often means having to pursue relief under Chapter 13 of the bankruptcy code which is a 5 year repayment plan.

On November 1, 2009 there will be new income limits for Rhode Islanders who are contemplating a bankruptcy filing.  Only households of 2 or 3 persons will find it easier to file bankruptcy after the change.  Single persons and households larger than 3 will find it more difficult.

Here are the new median income figures for RI households that will be used for Means Testing effective 11/1/09

  • 1 person $ 45,222
  • 2 people $ 62,806
  • 3 people $ 76,846
  • 4 people $ 87,002
  • 5 people $ 93,902
  • 6 people $ 100,802
  • 7 people $ 107,702
  • 8 people $ 114,602
  • each additional person add $ 6,900

But what counts towards gross income?  And how do we calculate family size for income comparison when there are so many living arrangements these days?  These are good questions and cannot be answered in this article because every case is different.

If most/all your income is being used just to pay monthly credit obligations you need advice today.  Call 467-6800 for a free telephone consultation, or leave some contact information and I will be happy to call you.

Filed Under: Means Test, Rhode Island, Rhode Island Bankruptcy Articles, Rhode Island Chapter 7 Tagged With: filing for bankruptcy in RI, Mark Buckley, RI bankruptcy, RI bankruptcy lawyer, RI Chapter 7, RI means test

About Mark Buckley

Estate Planning, Consumer Bankruptcy, and debt-settlement attorney licensed in RI & MA. I am the only bankruptcy lawyer who is a CERTIFIED FINANCIAL PLANNER professional.

To plan your estate, or resolve debt concerns, call me at (401) 467-6800.

Free Consultation

  • This field is for validation purposes and should be left unchanged.

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

How To File a Chapter 7 Bankruptcy Petition…

How to file for bankruptcy

Debt Collector Calls in Rhode Island…

Collection Agency Calls
30 Bankruptcy Commandments

Bankruptcy Videos

The Bankruptcy Discharge

Bankruptcy Court Hearings

Meeting of Creditors

Filing for Bankruptcy

Limits of Bankruptcy

Types of Bankruptcy

Introduction to Bankruptcy

Bankruptcy Links

Help With Taxes

Help With Judgments

Stop Bad Credit

Stop Tax Garnishments

Stop Foreclosures

Stop Repossession

Stop Lawsuits

Stop Bill Collectors

Latest Bankruptcy Law Blog Posts

Attorney Mark Buckley: Best Bankruptcy Lawyer in Warwick

2022: Top Bankruptcy Lawyers in Providence

Top 3 Bankruptcy Lawyers – Providence, Rhode Island – Attorney Mark Buckley, CFP

PROUD MEMBER OF

Image of the Massachusetts Bar Association logo.
Logo image of the Rhode Island Bar Association
Logo of the National Association of Consumer Bankruptcy Attorneys (NACBA)

Providence Office

1536 Westminster Street
Providence, RI 02909

Warwick Office

511 Green Bush Road
Warwick, RI 02818
  • Home
  • RI Bankruptcy
  • About Mark Buckley
  • FAQ
  • Contact Me
  • Blog
  • Forms
  • Disclaimer
  • Sitemap

Copyright © 2023 · RI-bankruptcy.com