130 Best Case Bankruptcy for Windows
Means Test Quick Start
The Quick Start is intended for people already familiar with the concepts involved in applying the Means Test. The
instructions and screen descriptions in the Quick Start are for a Chapter 7 debtor. If you are using the Means Test
Calculator for a Chapter 11 or Chapter 13 debtor, the screens you encounter and the information you enter differ
slightly from what is described here. An introduction to the concept of the Means Test and full instructions for each
screen can begin on page 131.
Running a Chapter 7 Means Test
Start a client file in Best Case. You don’t need to enter all case information to complete the Means Test.
2. In the Forms and Schedules Menu, double-click on Form 22A to open the Best Case Means Test Calculator.
If you have already filled in the debtor’s address, the county will be chosen for you; otherwise, select a county.
4. In the General
tab, indicate the debtor’s marital status and household and family size. This information helps
e whether the spouse’s income is included, which Census Bureau figures we compare with (household
size), and which IRS allowances apply (family size).
First, we’ll determine the debtor’s Current Monthly Income, or CMI. In the
Income tab, enter the average gross
(pre-tax) monthly income the debtor received for the last six months in each of the categories listed.
Note: Income received as a benefit of the Social Security Act is not included in the calculation of the
debtor's CMI. If your debtor receives unemployment compensation, enter it in the appropriate spot:
either in the income column, to be included in the Current Monthly Income, or below line 9, to be
excluded from the calculation.
6. Click the Median
tab to see how the debtor’s income compares to the st
ate median for his household size. Best
Case has filled in the median income for you. For many debtors, you will stop here, since their income will be
Tip: If your debtor is above the median, then to complete Form 22, you need to enter Schedule D
and E claims. You may want to exit Form 22 here and enter these claims before moving on to the
screens where you enter deductions and determine allowances. To save time, you may not want to
fill in all claim details: we just need the monthly payment, term, and past due amounts. For some
debtors (those with disposable income between $6,000-
$10,000), you’ll need to complete all creditor
information to accurately compute the unsecured total.
If your debtor’s income is above median, you must continue, en
tering a variety of expenses to arrive at the
Disposable Monthly Income (DMI). If the marital adjustment field is activated, enter the amount that the non-
filing spouse contributes to the household expenses.
8. Click the Living tab. Best Case will fill in the appropriate IRS allowance for living expenses such as food,
clothing, personal care, housekeeping, and miscellaneous. IRS Living Allowances are based on family size
(from the general tab), and income level (people in higher income brackets are allowed higher living expenses).
If you want to claim up to an additional 5% for food/clothing, indicate that in this tab.
9. Click the Health
tab. This is where you will enter information to calculate the debtor’s health care allowance.
Put simply, the health care allo
wance represents the number of people in the debtor’s household multiplied by
the IRS National Standards for Out-of-Pocket Health Care. There are two standards for health care; one for
household members under age 65, and one for those 65 or older. If the household contains members that are
both over and under 65, then you calculate the allowances for each age bracket separately. The two allowances
are then added together to yield the total health care allowance that is claimed on the form. The Health tab is
also used to determine the debtor’s health care expenses for the Other Necessary Expenses section of Form 22.