The form used for " means" testing in Chapter 7 cases is nine pages long! It may surprise you to learn that not everyone who files a Chapter 7 case is required to provide the information for each line or each page of the form. Due to policy considerations, some persons such as disabled veterans are eligible to short-cut the means testing process. I recently received a telephone call at our office from a disabled veteran with 100% disability suffered on active duty in Vietnam. Times are tough and debt collectors had been harassing him. He had visited our website; "did some homework"; read Jeff Field's blog published on our blog site on 9-13-12 and he was worried about "passing the means test". Many of our servicemen and servicewomen also are suffering from a service-connected disability so I will tell all of you what I told him: "Disabled veterans with at least 30% disability from service or who were released or discharged due to a disability suffered during a period of active duty" NEED ONLY check the box at line 1A and sign the form at line 57 to be through with the means test! This is a well-deserved edge for disabled veterans who may need a "fresh start"!
Who else is eligible for a "short-cut"? Any person whose income is solely from social security also may be eligible to be excluded from means testing. For example, a single filer whose income is solely from social security or married (joint) filers whose income is solely from social security would be excluded from means testing. When they sign the form at line 57, they are through! Who else? Persons whose DEBTS are "not primarily consumer debts" (that is, they have debts that are primarily business debts) NEED ONLY check the box at line 1B and sign the form at line 57 to be through with means testing. Who else? Members of the National Guard and reservists on active duty or on a homeland defense activity also may be eligible to be excluded from means testing.
If you believe you are eligible for a "short-cut", it's certainly worth a look. One of our attorneys will be happy to meet with you to evaluate your particular circumstances to ensure that Chapter 7 is the best option available for you to control your debt and get a "fresh start".