275:
536:. 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".
547:
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
539:
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"
512:
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
221:
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
790:
111:—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.
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525:
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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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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
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of 1942 proposed a system of contributory benefits which would leave only a residual role for means-tested benefits which were then called
61:
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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terms that govern many parts of it – including those terms that control whether it applies at all – are of unsettled definition.
524:, adding a means test to prevent wealthy debtors from filing for Chapter 7 Bankruptcy. The most noteworthy change brought by the
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475:, direct subsidized student loans, as well as the eligibility for relief for debtors who have sufficient financial
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501:, and starting in the 1960s, for benefits such as those provided by Medicaid and the Food Stamp Program.
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is a determination of whether an individual or family is eligible for government benefits, assistance or
27:, based upon whether the individual or family possesses the means to do with less or none of that help.
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311:
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in
Ireland. Both are used in the healthcare sector. Australia uses a means test for its Age Pension.
36:
131:. The income limits are specified in relation to the needs of a household and for savings there are
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123:. The means test is based on income, family circumstances and essential living costs. The
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209:. The claimant, their partner and dependent children are covered. The rules for free
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Determination of whether an individual or family is eligible for government assistance
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605:"Veterans burial fund has more money, but access still restricted: budget office"
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104:
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Second
Edition. Jeff Ferriell and Edward J. Janger. LexisNexis. 2007. p. 28.
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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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Other examples of means testing include
Medifund in Singapore and
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as "presumed income". If the debtor's debt is not primarily
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and tax credits is a passport to other non-cash help such as
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payments for people making over $ 69,562 (in 2012). The
827:
U.S. Bankruptcy Courts information on means testing
217:have become more complex since the introduction of
469:Federal Supplemental Educational Opportunity Grant
447:Means testing is used to test for eligibility to
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642:The Financial Times Guide to Managing Your Money
69:of 1984 requires that all the provinces provide
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142:The main means-tested benefits in 2019 were:
65:were once common but are now illegal, as the
832:LSC (UK) means-tested eligibility calculator
736:(8). Social Security Administration: 36–44.
504:In 1992, third-party presidential candidate
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639:
520:In 2005, the US substantially changed its
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421:
461:Supplemental Nutrition Assistance Program
691:"'Go to the dentist and get fined £100'"
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770:"Why the bankruptcy means test matters"
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544:, then the means test is inapplicable.
453:Temporary Assistance for Needy Families
839:
627:"National Unemployed Workers Movement"
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763:
761:
101:National Unemployed Workers' Movement
603:Brewster, Murray (4 November 2013).
189:Receipt of such benefits other than
41:In Canada, means tests are used for
813:Means Testing for Medical Subsidies
665:"Criminal legal aid: means testing"
137:living together as a married couple
95:Welfare state in the United Kingdom
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689:Coughlan, Sean (18 October 2017).
481:Title 11 of the United States Code
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820:
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726:"Fifty Years of Social Security"
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159:Employment and Support Allowance
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283:Bankruptcy in the United States
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607:. Macleans. The Canadian Press
513:accepting those benefits with
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852:United States bankruptcy law
768:Pyles, Sean (18 July 2016).
226:. Defunct benefits include:
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772:. Christian Science Monitor
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394:Chief restructuring officer
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473:Federal Work-Study Program
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34:
712:Understanding Bankruptcy.
585:Conditional cash transfer
371:Aspects of bankruptcy law
37:Social programs in Canada
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791:11 U.S.C. § 707(b)(2)(B)
730:Social Security Bulletin
724:McSteen, Martha (1985).
246:Family Income Supplement
47:post-secondary education
63:public health insurance
640:D'Arcy, Cliff (2009),
526:2005 BAPCPA amendments
508:proposed that future
488:Chapter 13 bankruptcy
236:Supplementary Benefit
224:NHS Low Income Scheme
153:Jobseeker's Allowance
109:means-tested benefits
207:cold weather payment
199:prescription charges
71:universal healthcare
231:National Assistance
129:National Assistance
119:and for the higher
575:Entitlement theory
389:Bankruptcy trustee
179:Working Tax Credit
847:Welfare economics
651:978-0-273-71703-4
457:Section 8 housing
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195:free school meals
117:magistrates court
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133:upper limits
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867:Poverty law
776:16 December
747:9 September
611:29 November
570:Entitlement
499:Home Relief
493:During the
121:Crown Court
841:Categories
802:Abanet.org
675:2020-02-26
591:References
506:Ross Perot
465:Pell Grant
404:Means test
363:Chapter 15
358:Chapter 13
353:Chapter 12
348:Chapter 11
93:See also:
57:" (direct
21:means test
484:Chapter 7
384:Discharge
343:Chapter 9
338:Chapter 7
292:Authority
203:Legal Aid
113:legal aid
107:. Today,
51:legal aid
697:15 April
564:See also
449:Medicaid
330:Chapters
75:clawback
742:3901340
297:History
197:, free
103:in the
55:welfare
53:, and "
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669:GOV.UK
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693:. BBC
477:means
399:Claim
307:Court
115:in a
45:(for
778:2017
749:2014
738:PMID
699:2019
646:ISBN
613:2014
322:FRBP
317:Code
213:and
486:or
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312:BAP
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