Collier TopForm™ and the Bankruptcy Means Test: Frequently Asked Questions (FAQs)

TopForm versions 7.5 and higher support the new means test required by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (P.L. 109-8). Here are some basic questions and answers about this new requirement and the features in TopForm that support it:

What Is the Means Test?
Where Is the Means Test?
Where Can I Find the Means Test in Collier TopForm?
Where Can I Find the IRS Housing and Utilities Standards?
Why Won't TopForm Allow Me to Change Some of the Amounts in Form 22?

What Is the Means Test?

Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (P.L. 109-8), a consumer bankruptcy petitioner's current income and expenses may create a presumption of abuse. The Means Test is the calculation used to determine whether or not the presumption of abuse arises. The calculation incorporates regional median income information from the Census Bureau and various deductions based on national and local Internal Revenue Service standards. If the presumption of abuse arises and cannot be overcome by special circumstances, the debtor is not entitled to file under Chapter 7, and would instead have to file under another chapter, typically Chapter 13. Chapter 13 uses the same deductions and calculations to determine disposable income.

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Where Is the Means Test?

You can find the Means Test calculation in Official Bankruptcy Forms B22A and B22C. Although B22C, for Chapter 13 bankruptcies, does not refer to means testing, it uses the same questions, calculations, and deductions as the B22A Means Test to determine disposable income.

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Where Can I Find the Means Test in Collier TopForm?

Collier TopForm versions 7.5 and higher provide a single data entry form for the Means Test: Form 22 - Statement of Current Monthly Income. Not all cases and debtor situations require the same information for Form 22. For more information, refer to your Collier TopForm™ User's Guide.

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Where Can I Find the IRS Housing and Utilities Standards?

Because these standards were not officially available from the IRS when version 7.5 was released, version 7.5 does not automatically populate this field. These standards are available now, and TopForm automatically adds this information for you when you update your program to version 7.5.1 or above. You can find these standards and information on how they affect the Means Test at http://www.usdoj.gov/ust/eo/bapcpa/meanstesting.htm.

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Why Won't TopForm Allow Me to Change Some of the Amounts in Form 22?

By default, Collier TopForm™ automatically pulls information into Form 22 from Schedules E, I, and J. Use the Allow/Prevent Schedule E/I/J Pull option to disable this function. See To complete Form 22 in the product Help or User's Guide for more information.

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