Means Test and Automobiles
Posted by Kevin on April 27, 2011 under Bankruptcy Blog | 
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The means test, as we have stated before, serves as a gatekeeper to who can file under Chapter 7. If you are below the median income based on household size for your region, then you have passed. If you are above median, the next step is to compare your average income for the previous six months against expenses. For expenses, the means test looks at national expenses (food, auto), regional expenses (housing) and actual expenses.
One of the key deductions involves automobiles. The means test has two expense lines which refer to automobiles: ownership costs and operating costs. The ownership cost is a generous $490+ per month which can be applied to two vehicles.
