The Michigan Bankruptcy Means Test determines eligibility for Chapter 7 bankruptcy by assessing income and expenses. Below is a simplified breakdown of its key aspects.

Purpose of the Means Test

• Ensures Chapter 7 bankruptcy is reserved for individuals who genuinely cannot repay debts.

• Prevents abuse of the bankruptcy system by filtering out those with sufficient disposable income.

• Compares your average monthly income over the past six months to Michigan’s median income for your household size.

• If your income is below the median, you automatically qualify for Chapter 7.

• If your income is above the median, further calculations assess disposable income.

• • Certain expenses are deducted from income, including:

    • Housing and utility costs

    • Food and clothing expenses

    • Medical and health-related costs

    • Childcare and education expenses

    • Secured debt payments (e.g., mortgage, car loan)

  • If disposable income after deductions is low, you may still qualify for Chapter 7.

• Disabled veterans with debts incurred during active duty or homeland defense activities.
• Individuals whose debts are primarily business-related rather than consumer debts.

• Accurate Filing: Attorneys ensure proper documentation and compliance with Michigan bankruptcy laws.

• Exemption Maximization: Legal professionals help protect assets under Michigan’s bankruptcy exemptions.

• Court Representation: Lawyers advocate for clients during hearings and creditor meetings.

Michigan Compiled Laws (MCL) Links

For official Michigan bankruptcy statutes, visit the

• Michigan Legislature’s MCL Search tool.
• MCL Section 600.5451 – Michigan bankruptcy exemptions

Understanding the Michigan Bankruptcy Means Test is crucial for determining eligibility for Chapter 7 bankruptcy. Consulting a qualified bankruptcy attorney ensures a smoother process and better protection of assets. If you’re considering bankruptcy, legal guidance can help you make informed choices.