The means test is a mechanical calculation, but it has enough moving parts that mistakes are common. Some mistakes make you think you fail when you would actually pass. Others can cause your case to be challenged after filing. Here are the ones we see most often.
Mistake #1: Including Social Security Income
The Error
Including Social Security benefits in your current monthly income calculation.
Social Security income is excluded from the means test. All types -- retirement, disability (SSDI), survivors benefits, SSI. This is one of the most common errors, especially among retirees and people on disability who assume "all income counts."
If you receive $2,000/month in Social Security and $1,500/month from a pension, your CMI for means test purposes is $1,500 -- not $3,500. This single correction can mean the difference between being above or below the median.
The Fix
On Form 122A-1, Line 3 specifically excludes Social Security. Do not include it in any income line. If you have already calculated your means test with Social Security included and failed, recalculate without it.
Mistake #2: Wrong Household Size
The Error
Using the wrong number for household size -- either too small (missing dependents) or too large (including people who should not count).
Household size directly determines which median income number you compare against. A household of 2 might have a median of $68,000 while a household of 3 has a median of $78,000. Getting this number wrong by even one person can change your result.
The tricky part: courts disagree on how to count household size. Three approaches exist:
- Census Bureau (head count) -- everyone living in your home, regardless of relationship or dependency
- IRS dependent test -- only people you can claim as dependents on your tax return, plus yourself and spouse
- Economic unit test -- people who form a single economic unit, sharing income and expenses
Different courts in different districts use different tests. The one your court uses can significantly affect your result.
The Fix
Find out which test your district uses. If you have a child in college who lives away but you claim as a dependent, the answer changes depending on the test. If you have a roommate who splits rent, the answer changes. Ask an attorney familiar with your local court.
Mistake #3: Using Gross Income or Annual Salary
The Error
Using your annual salary or current gross paycheck amount instead of calculating CMI properly.
The means test does not use your current salary or your annual income. It uses your average monthly income over the 6 full calendar months before filing. If your income has changed during that period -- you got a raise, lost a job, worked overtime, received a bonus -- the 6-month average will be different from your current salary.
This also means that timing matters. If you had a high-income month 5 months ago, it is still in the lookback. If you wait one more month, it drops out.
The Fix
Gather pay stubs, bank statements, and income records for the exact 6 calendar months before your planned filing date. Add up every dollar. Divide by 6. That is your CMI. Do not estimate or use your current paycheck as a shortcut.
Mistake #4: Not Claiming All Deductions
The Error
Leaving deductions blank or underestimating them on Form 122A-2.
Many above-median filers leave money on the table. Form 122A-2 has dozens of line items, and it is easy to skip ones you do not immediately recognize. Common missed deductions:
- Health insurance premiums -- especially marketplace plans
- Mandatory retirement contributions -- employer-required 401(k) contributions
- Childcare costs -- the full actual amount
- State and local taxes -- often forgotten when only federal is obvious
- Chapter 13 administrative expense -- available even on the Chapter 7 form
- Priority debt payments -- 1/60th of back taxes owed
- HSA contributions
- Telecommunications -- additional phone/internet allowance
See the full deductions guide for every category.
The Fix
Go through Form 122A-2 line by line. For every deduction category, ask: "Does this apply to me?" Do not leave lines blank if you have any qualifying expense. The form is long for a reason -- every deduction is an opportunity to reduce your disposable income.
Mistake #5: Using Outdated Median Income Figures
The Error
Using median income figures from a previous period rather than the ones in effect on your filing date.
The U.S. Trustee updates median income figures approximately every 6 months. The figures change -- sometimes significantly. If you calculated your means test using last year's figures and the medians have since increased, you might actually be below the new median.
The Fix
Always check justice.gov/ust/means-testing for the most current figures before filing. Use the figures in effect on your filing date, not the date you start preparing forms.
Mistake #6: Forgetting the Non-Filing Spouse
The Error
If married but filing individually, not including the non-filing spouse's income on Form 122A-1 -- or including it but forgetting to claim the "marital adjustment" deduction.
If you are married and filing without your spouse, you must still report your spouse's income on Form 122A-1. However, you then get a marital adjustment deduction on the continuation sheet -- you can subtract the portion of your spouse's income that is not used for your household expenses or your dependents' expenses.
Some filers forget to include the spouse's income (which can cause problems if discovered). Others include it but forget to claim the marital adjustment (which inflates their CMI and may push them above the median).
The Fix
If filing individually while married: report spouse's income, then carefully calculate the marital adjustment. The adjustment subtracts the spouse's income that goes to his or her own separate expenses and obligations.
Mistake #7: Miscalculating Secured Debt Deductions
The Error
Using the current monthly payment instead of the 60-month average, or forgetting to include arrearage cure amounts.
Secured debt deductions on the means test are calculated by dividing the total amount you will owe over the next 60 months by 60. This is not necessarily the same as your current monthly payment. If your car loan will be paid off in 24 months, you divide the remaining balance by 60 (not the monthly payment times 60). If you have mortgage arrears, include the arrearage cure amount in the calculation.
The Fix
For each secured debt: calculate total remaining balance + any arrears. Divide by 60. That is your monthly deduction for that debt. This may be less than your actual monthly payment (if the loan term is shorter than 60 months) or more (if arrears are included).
Mistake #8: Not Considering Filing Timing
The Error
Filing immediately without considering how the 6-month lookback period affects the calculation.
Because the means test averages 6 months of income, the date you file can dramatically change your result. A bonus in month 1 of the lookback inflates your average. Waiting until it rolls out of the window can be the difference between passing and failing.
The Fix
Before filing, calculate your CMI for several possible filing dates. Map out the 6-month lookback for each. Find the date that gives you the most favorable average -- considering not just income spikes but also any months with reduced income that should be in the window.
The Big Picture
Every Error Goes in One Direction
Notice something about these mistakes? Most of them make you appear to have more income than you actually have for means test purposes. Including Social Security, using the wrong household size, missing deductions, using gross salary -- they all push your result toward failing. If you think you fail the means test, double-check every one of these items before giving up on Chapter 7.
Run the Numbers Correctly
Start with the basic income-vs-median comparison using the right figures.
Not Legal Advice
This page identifies common errors for educational purposes. Your specific means test calculation depends on your circumstances, your district's practices, and the current forms and standards. Consult a licensed bankruptcy attorney for personalized guidance.