For any Utah resident interested in filing bankruptcy during these stressful, unpredictable financial times, the first step is completing the Chapter 7 Means Test to demonstrate your eligibility to file a Chapter 7 case. The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 was a controversial Act of Congress that significantly revised the United States Bankruptcy Code for cases filed on or after October 17, 2005.
One important change was the implementation of the Means Test in 2005. The Means Test was created because the lobbies of the banks and credit card companies pushed the notion to members of Congress that filers were abusing the bankruptcy process, especially when it came to filing Chapter 7 cases. Congress was made to believe that people were filing Chapter 7 cases although they had the financial means to repay some or all of their debts. Presently, Chapter 7 relief remains available to Utah residents who are required to measure their eligibility to file a Chapter 7 by completing the Means Test.
The following are the income thresholds for determining Chapter 7 eligibility in Utah as of December 29, 2020. These thresholds change on a regular basis. Consulting with an experienced and knowledgeable bankruptcy attorney may help ensure that the Means Test and eligibility to file a Chapter 7 case is correctly calculated and measured respectively.
Utah Median Income Levels
| Utah Median Income Standards for Means Test for Cases Filed On or After May 1, 2020 | ||
| Household Size | Monthly Income | Annual Income |
| 1 | $5,400.50 | $64,806.00 |
| 2 | $5,750.50 | $69,006.00 |
| 3 | $6,886.50 | $82,638.00 |
| 4 | $7,789.50 | $93,474.00 |
| 5 | $8,539.50 | $102,474.00 |
| 6 | $9,289.50 | $111,474.00 |
| 7 | $10,039.50 | $120,474.00 |
| 8 | $10,789.50 | $129,474.00 |
| 9 | $11,539.50 | $138,474.00 |
| 10 | $12,289.50 | $147,474.00 |
Theron Morrison and the Morrison Law Group help their clients through every important stage of their bankruptcy case, especially when children are involved. Call 801.456.9933 today to schedule a FREE consultation. We have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.
