Bankruptcy & Finance Calculators

The means test determines Chapter 7 eligibility by comparing your income to your state median. If your income is below the median, you automatically qualify. If above, you must complete a detailed income and expense calculation. Median incomes range from roughly $50,000-$110,000 depending on household size and state.

Chapter 13 allows you to repay debts over 3-5 years through a court-approved plan. Your monthly payment is based on disposable income after allowed expenses. Priority debts (taxes, alimony, child support) are paid in full. Unsecured creditors receive what's left — sometimes pennies on the dollar.

Federal and state exemptions protect certain assets from creditors. Common exemptions include homestead equity ($25,150 federal, up to unlimited in some states), vehicle equity ($4,000 federal), retirement accounts (fully protected in most cases), and household goods up to $625 per item. State exemptions often exceed federal amounts.

Medicaid's 60-month look-back period reviews asset transfers made within 5 years of applying for long-term care benefits. Transfers below fair market value trigger a penalty period during which Medicaid will not pay for nursing home care. Gifts to children and most asset transfers are subject to this rule.