What Is the Means Test?

The means test is the calculation Congress built into the Bankruptcy Code to determine whether someone's income is low enough to qualify for Chapter 7, or whether they should instead be directed toward a Chapter 13 repayment plan. It's completed using an official court form — commonly known as Form 122A — as part of the bankruptcy filing.

The general structure

At a high level, the means test works in two stages. First, it compares the filer's average income over a specified recent period against the median income for a household of the same size in their state. If income falls at or below the median, the filer generally passes the means test and is presumed eligible for Chapter 7 on income grounds. If income is above the median, a second, more detailed calculation applies — one that factors in specific allowed expenses and certain debt payments to determine whether there's enough disposable income to fund a repayment plan instead.

Why it exists

The means test was added to bankruptcy law to ensure that Chapter 7's more complete debt relief is generally reserved for filers who genuinely don't have the ability to repay a meaningful portion of their debts, while steering filers with more disposable income toward Chapter 13.

Numbers change — and vary by state

Median income figures and the specific expense allowances used in the means test are published by the U.S. Trustee Program and are updated periodically; they also vary depending on the state and household size involved. Because of that, this article intentionally doesn't cite specific dollar figures — any number would risk being outdated or simply wrong for your situation by the time you read it. Current figures are published on official government resources, and a licensed attorney can help apply them accurately to your circumstances.

It's a legal calculation, not a clerical one

While the means test involves a lot of numbers, correctly applying it — determining which income counts, which expenses are allowable, and how special circumstances factor in — is a legal judgment. This is exactly the kind of determination Black Diamond Bankruptcy Document Preparation does not make on your behalf. We can accurately type the figures you provide onto the required forms, but deciding what those figures should be, or what they mean for your eligibility, is outside what a non-attorney document preparer is permitted to do.

If your situation feels complicated

If your income is near the threshold, fluctuates significantly, or your household situation is unusual, that's a strong signal to speak with a licensed bankruptcy attorney before filing. The stakes of getting this calculation wrong — filing in the wrong chapter, or having a case challenged — are high enough that it's worth getting professional judgment involved early.

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