The Mean's Test is a formula that bankruptcy courts will use to determine whether the debtor has enough income to pay off certain expenses. One of its purposes is to ensure that high income individuals from filing for Chapter 7.
The formula is highly complicated, but it is also generous for many potential bankruptcy filers. The mean's test, however, is only permitted for personal bankruptcy filers and is not used for businesses.
If you or anyone you know has questions about the mean's test, contact the Arizona bankruptcy lawyers of the Harmon Law Office at 480-829-0494.