In 2005, the Chapter 7 Means test was introduced, which greatly hindered many Americans from filing Chapter 7. The bankruptcy "means test" determines whether your income is low enough for you to file Chapter 7 bankruptcy. It's supposed to keep filers with higher incomes from filing for Chapter 7 bankruptcy. But many of us never get far enough in the process for a determination to be made as to whether we can truly pay our debts.
If we can't get rid of the Chapter 7 Means test, below are other changes to the existing policy that can be made that will benefit American citizens:
1. Make the deduction of monthly expenses part of the initial calculation.
2. Raise the maximum limits to $150,000.
3. Provide a 'holiday' where the Chapter 7 Means Test doesn't apply for debt from 2005 - 2008.