Table of Contents
- What if You Fail the Means Test? Alternative Options and Strategies
- What Does It Mean to “Fail” the Means Test?
- Option 1: File for Chapter 13 Bankruptcy
- Benefits of Chapter 13:
- Option 2: Consider Special Circumstances or Exceptions
- Option 3: Recalculate Using Accurate Expenses
- Option 4: Wait and Refile Later
- Option 5: Non-Bankruptcy Debt Relief
- Why a Local Bankruptcy Attorney Is Essential
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Facing the bankruptcy Means Test can be daunting, especially if you find yourself failing it. However, there are alternative options and strategies available to help you regain financial stability, including the possibility of filing for Chapter 13 or leveraging special circumstances. Consulting with a bankruptcy attorney near you can provide the guidance you need to navigate these alternatives effectively.
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Discover alternatives to Chapter 7 bankruptcy if you fail the Means Test, including Chapter 13 options and special circumstances. Learn how a bankruptcy attorney near you can guide you through your debt relief journey and help you regain financial stability.
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Flat vector illustration of a person at a crossroads exploring bankruptcy Means Test alternatives like Chapter 13, special circumstances, recalculation, and non-bankruptcy options, guided by a bankruptcy attorney near you.
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Mar 30, 2025 06:20 PM
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What if You Fail the Means Test? Alternative Options and Strategies
Failing the bankruptcy Means Test might feel like a dead end—but it’s not. While passing the Means Test often qualifies you for Chapter 7 bankruptcy, failing it simply means you may need to consider other paths to debt relief. There are still viable legal options available, and understanding them can help you regain financial stability without panic or shame.
In this post, we’ll break down what happens if you fail the Means Test, what your alternative options are, and how a bankruptcy attorney near you can help you make the smartest move forward.
💡 For every post in this series, scroll down to “Related Posts.”
What Does It Mean to “Fail” the Means Test?
The Means Test compares your income and allowable expenses to determine whether you have enough disposable income to repay some of your debts. If your disposable income is too high, you fail the test—and may not be eligible to file under Chapter 7.
But failing doesn’t mean you’re stuck. It just means Chapter 7 may not be your best fit—and that’s where Chapter 13 or other legal strategies come in.
Option 1: File for Chapter 13 Bankruptcy
Chapter 13 is the most common alternative to Chapter 7 when the Means Test doesn’t work in your favor. Instead of wiping debts immediately, Chapter 13 allows you to repay part or all of your debts over 3–5 years through a court-approved plan.
Benefits of Chapter 13:
- Keep all your assets
- Catch up on mortgage or car payments
- Stop foreclosure or repossession
- Discharge remaining qualifying debts at plan completion
Check out Chapter 13 Bankruptcy: The Repayment Plan in Detail to learn how it works step-by-step.
Option 2: Consider Special Circumstances or Exceptions
Even if you fail on paper, certain factors might allow you to override the Means Test or qualify under special provisions:
- Recent job loss or income drop
- High unreimbursed medical expenses
- Disabled or dependent family members
- Military service exceptions
A bankruptcy lawyer near you can help you document these circumstances to justify Chapter 7 eligibility or build a more favorable repayment plan.
Option 3: Recalculate Using Accurate Expenses
Sometimes, Means Test failures happen due to incomplete or incorrect deductions. Many filers don’t include all their allowable expenses—like:
- Health insurance premiums
- Childcare costs
- Court-ordered payments
- Transportation costs
An experienced bankruptcy attorney near you can help you recalculate and see if you actually qualify.
Option 4: Wait and Refile Later
If your income is temporarily high but expected to decline (e.g., end of seasonal work, job change, maternity leave), you might simply wait a few months and refile. The Means Test looks at the last six months of income, so a lower average can improve your eligibility.
Option 5: Non-Bankruptcy Debt Relief
If bankruptcy isn’t the right path, there are other legal tools to manage debt:
- Debt consolidation loans
- Debt management programs
- Debt settlement (negotiate lump-sum payoffs)
- Credit counseling plans
However, these options don’t offer the same protections (like the automatic stay or debt discharge), so they should be reviewed carefully with professional help.
Why a Local Bankruptcy Attorney Is Essential
Whether you qualify for Chapter 7 or need a tailored Chapter 13 strategy, a bankruptcy attorney near you can:
- Help you maximize exemptions
- Correctly calculate the Means Test
- Propose affordable repayment plans
- Defend against creditor objections
ReferU.AI connects you with an experienced bankruptcy attorney near you who understands the Means Test and all alternative strategies. Our AI-powered platform helps you get matched with the right legal expert—because failing the test doesn’t mean failing your financial future.
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