286:
547:. The amendments effectively subject most debtors who make an income, as calculated by the Code, above the median income of the debtor's state to an income-based test. This is referred to as the "means test". The means test provides for a finding of abuse if the debtor's income is higher than a specified portion of their debts. If a presumption of abuse is found under the means test, it may be rebutted only in the case of "special circumstances".
558:
Thus, the means test is a formula designed to keep filers with higher incomes from filing for
Chapter 7 bankruptcy. These filers may use Chapter 13 bankruptcy to repay a portion of their debts, but may not use Chapter 7 to wipe out their debts altogether. The bankruptcy means test is complex and the
550:
Debtors whose income is below the state's median income are not subject to the means test. The Code-calculated income may be higher or lower than the debtor's actual income at the time of filing for bankruptcy. This has led some commentators to refer to the bankruptcy code's "current monthly income"
523:
benefits be subjected to a means test; though this was hailed by some as a potential solution to a purported impending crisis in funding the program, few other political candidates since Perot have publicly made the same suggestion, which would require costly investigations and might associate
232:
and have led to many people facing financial penalties, often wrongly. People who are not entitled to any of the qualifying benefits may be able to qualify for help with health charges by a separate means test, the
801:
122:—meaning that entitlement is affected by the amount of income, savings, capital and assets— is a central feature of the benefit system. Means testing is also part of the determination of
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It should be supplemented by effective private pensions, individual insurance, savings, and other investments; and it should be undergirded by effective means-tested programs.
637:
536:
302:
96:
uses a means test on a deceased veteran's estate and surviving widow to determine whether they are eligible for federal funding to subsidize their funeral.
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to pay a portion of their debts. The means test is perhaps best recognized in the United States as the test used by courts to determine eligibility for
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615:
84:
coverage to be eligible for subsidies from the federal government. Means tests are also not used for pensions and seniors' benefits, but there is a
138:
of 1942 proposed a system of contributory benefits which would leave only a residual role for means-tested benefits which were then called
72:
to individuals to combat poverty). They are not generally used for primary and secondary education which are tax-funded. Means tests for
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127:
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363:
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111:
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terms that govern many parts of it – including those terms that control whether it applies at all – are of unsettled definition.
535:, adding a means test to prevent wealthy debtors from filing for Chapter 7 Bankruptcy. The most noteworthy change brought by the
463:
353:
348:
445:
862:
660:
332:
307:
105:
842:
540:
491:
327:
147:
486:, direct subsidized student loans, as well as the eligibility for relief for debtors who have sufficient financial
169:
532:
520:
293:
275:
317:
225:
312:
399:
512:, and starting in the 1960s, for benefits such as those provided by Medicaid and the Food Stamp Program.
404:
34:
is a determination of whether an individual or family is eligible for government benefits, assistance or
38:, based upon whether the individual or family possesses the means to do with less or none of that help.
857:
483:
438:
322:
17:
595:
571:
in
Ireland. Both are used in the healthcare sector. Australia uses a means test for its Age Pension.
47:
142:. The income limits are specified in relation to the needs of a household and for savings there are
867:
256:
163:
57:
872:
73:
675:
498:
431:
246:
234:
812:
877:
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81:
134:. The means test is based on income, family circumstances and essential living costs. The
8:
580:
467:
409:
241:
139:
837:
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189:
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220:. The claimant, their partner and dependent children are covered. The rules for free
27:
Determination of whether an individual or family is eligible for government assistance
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616:"Veterans burial fund has more money, but access still restricted: budget office"
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184:
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389:
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157:
115:
93:
851:
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725:
Second
Edition. Jeff Ferriell and Edward J. Janger. LexisNexis. 2007. p. 28.
568:
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53:
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in the 1930s, the test was used to screen applicants for such programs as
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for some of the benefits. A couple who are not married may be treated as
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Resentment over a means test was among the factors giving rise to the
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85:
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Other examples of means testing include
Medifund in Singapore and
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35:
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as "presumed income". If the debtor's debt is not primarily
204:
and tax credits is a passport to other non-cash help such as
92:
payments for people making over $ 69,562 (in 2012). The
838:
U.S. Bankruptcy Courts information on means testing
228:have become more complex since the introduction of
480:Federal Supplemental Educational Opportunity Grant
458:Means testing is used to test for eligibility to
849:
653:The Financial Times Guide to Managing Your Money
80:of 1984 requires that all the provinces provide
439:
153:The main means-tested benefits in 2019 were:
76:were once common but are now illegal, as the
843:LSC (UK) means-tested eligibility calculator
747:(8). Social Security Administration: 36–44.
515:In 1992, third-party presidential candidate
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650:
531:In 2005, the US substantially changed its
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432:
472:Supplemental Nutrition Assistance Program
702:"'Go to the dentist and get fined £100'"
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613:
781:"Why the bankruptcy means test matters"
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555:, then the means test is inapplicable.
464:Temporary Assistance for Needy Families
14:
850:
638:"National Unemployed Workers Movement"
778:
774:
772:
112:National Unemployed Workers' Movement
614:Brewster, Murray (4 November 2013).
200:Receipt of such benefits other than
52:In Canada, means tests are used for
824:Means Testing for Medical Subsidies
676:"Criminal legal aid: means testing"
148:living together as a married couple
106:Welfare state in the United Kingdom
24:
769:
700:Coughlan, Sean (18 October 2017).
492:Title 11 of the United States Code
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25:
889:
831:
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737:"Fifty Years of Social Security"
655:, Financial Times, p. 159,
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170:Employment and Support Allowance
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294:Bankruptcy in the United States
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728:
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693:
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618:. Macleans. The Canadian Press
524:accepting those benefits with
13:
1:
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863:United States bankruptcy law
779:Pyles, Sean (18 July 2016).
237:. Defunct benefits include:
7:
783:. Christian Science Monitor
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405:Chief restructuring officer
10:
894:
484:Federal Work-Study Program
103:
45:
723:Understanding Bankruptcy.
596:Conditional cash transfer
382:Aspects of bankruptcy law
48:Social programs in Canada
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802:11 U.S.C. § 707(b)(2)(B)
741:Social Security Bulletin
735:McSteen, Martha (1985).
257:Family Income Supplement
58:post-secondary education
74:public health insurance
651:D'Arcy, Cliff (2009),
537:2005 BAPCPA amendments
519:proposed that future
499:Chapter 13 bankruptcy
247:Supplementary Benefit
235:NHS Low Income Scheme
164:Jobseeker's Allowance
120:means-tested benefits
218:cold weather payment
210:prescription charges
82:universal healthcare
242:National Assistance
140:National Assistance
130:and for the higher
586:Entitlement theory
400:Bankruptcy trustee
190:Working Tax Credit
858:Welfare economics
662:978-0-273-71703-4
468:Section 8 housing
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276:Bankruptcy in the
206:free school meals
128:magistrates court
78:Canada Health Act
70:transfer payments
16:(Redirected from
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195:Child Tax Credit
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202:Housing Benefit
185:Housing Benefit
168:Income-related
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54:student finance
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620:. Retrieved
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313:U.S. Trustee
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144:upper limits
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878:Poverty law
787:16 December
758:9 September
622:29 November
581:Entitlement
510:Home Relief
504:During the
132:Crown Court
852:Categories
813:Abanet.org
686:2020-02-26
602:References
517:Ross Perot
476:Pell Grant
415:Means test
374:Chapter 15
369:Chapter 13
364:Chapter 12
359:Chapter 11
104:See also:
68:" (direct
32:means test
18:Means-test
495:Chapter 7
395:Discharge
354:Chapter 9
349:Chapter 7
303:Authority
214:Legal Aid
124:legal aid
118:. Today,
62:legal aid
708:15 April
575:See also
460:Medicaid
341:Chapters
86:clawback
753:3901340
308:History
208:, free
114:in the
66:welfare
64:, and "
36:welfare
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680:GOV.UK
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704:. BBC
488:means
410:Claim
318:Court
126:in a
56:(for
789:2017
760:2014
749:PMID
710:2019
657:ISBN
624:2014
333:FRBP
328:Code
224:and
497:or
420:DIP
323:BAP
88:of
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