Why Household Size Matters
Household size is one of the most important variables on the means test because it determines which median income threshold applies to you. The larger your household, the higher the median income threshold -- and the easier it is to qualify for Chapter 7.
For example, the 2026 median income in Missouri for a single-person household is approximately $56,000. For a household of 4, it is approximately $89,000. That is a $33,000 difference. A person earning $70,000 would fail at Step 1 as a single-person household but pass easily as a household of 4.
The problem? The Bankruptcy Code does not define "household." Section 707(b)(7) references "the debtor's household" without saying what that means. This ambiguity has created a circuit split, with different courts using different approaches to determine household size.
The Circuit Split
Federal courts have adopted three different approaches to defining household size for the means test. The approach your court uses can change your result. If you are filing in a jurisdiction where the law is unsettled, the definition of "household" may be a contested issue.
The Three Approaches
1. Census Bureau Approach ("Heads on Beds")
Under this approach, your household includes everyone who lives in your home, regardless of their legal or financial relationship to you. The Census Bureau defines a household as "all people who occupy a housing unit." This is the broadest definition.
Who counts: Your spouse, your children (minor or adult), your parents, your grandchildren, your siblings, roommates, significant others, anyone sleeping under your roof on a regular basis.
Who does not count: People who have a separate residence, people temporarily visiting, college students living away from home (debatable -- some courts count them, some do not).
Pros: Simple to apply. Largest household size, which means the highest median income threshold. Favorable for debtors in multi-generational or multi-person households.
Cons: Can include people who have no financial connection to the debtor. A roommate who pays their own bills and contributes nothing to the debtor's expenses would still count.
2. IRS / Tax Dependent Approach
Under this approach, your household includes you, your spouse (if filing jointly), and anyone you claim as a dependent on your federal tax return. This follows IRS rules for dependency -- generally minor children, full-time students under 24, and qualifying relatives who meet income and support tests.
Who counts: You, your spouse, and your tax dependents (as defined by the Internal Revenue Code).
Who does not count: Roommates, adult children with their own income, elderly parents you support but do not claim as dependents, significant others, friends.
Pros: Objective and verifiable -- just look at the most recent tax return. Consistent with how income is reported elsewhere in the bankruptcy forms.
Cons: Narrowest definition. May exclude people who are genuinely part of the economic household. A debtor supporting an elderly parent who is not a tax dependent would not get to count that parent.
3. Economic Unit Approach (Hybrid)
Under this approach, your household includes people who are financially interdependent -- those who share income, expenses, and financial resources as a single economic unit. This is a fact-specific inquiry that looks at actual financial relationships rather than legal categories.
Who counts: Anyone who shares financial resources with you -- contributing to household bills, depending on you for support, or pooling income for shared expenses. Your spouse, dependent children, elderly parents you support, adult children who contribute to household costs, and domestic partners who share finances.
Who does not count: Roommates with separate finances who simply split rent, temporary guests, people with whom you have no financial interdependence.
Pros: Most accurate reflection of actual economic reality. Captures the people who genuinely affect your financial situation.
Cons: Fact-intensive and potentially subjective. Requires documenting financial relationships, which can be complicated and contested.
Which approach does your court use?
The approach varies by circuit and sometimes by district. Before filing, determine which approach your local bankruptcy court follows. Your attorney or the court's published decisions will tell you. If the law is unsettled in your jurisdiction, the household size definition could be a point of litigation -- which means you may want to prepare arguments for the most favorable interpretation.
Common Household Members: Do They Count?
Spouse (Not Filing Jointly)
Your spouse counts as part of your household under all three approaches, whether they are filing with you or not. This is important because it cuts both ways: a larger household means a higher median income threshold (good), but a non-filing spouse's income is included in your CMI calculation (potentially bad). See the marital adjustment section below.
Minor Children
Minor children living with you count under all three approaches. They are your dependents, they live in your home, and they are part of your economic unit. If you share custody, the analysis becomes more nuanced -- courts generally count children who primarily reside with you.
Adult Children Living at Home
This is where the approaches diverge significantly:
- Census approach: Count if they live in your home, regardless of income or independence.
- IRS approach: Count only if you claim them as tax dependents (generally must be under 24 and a full-time student, or meet qualifying relative tests).
- Economic unit approach: Count if they share finances with you -- contributing to household expenses or depending on your support. An adult child paying their own bills from their own income may not count.
Elderly Parents
An elderly parent living in your home counts under the Census approach. Under the IRS approach, they count only if you claim them as a dependent. Under the economic unit approach, they count if they are financially interdependent with you -- which is common for elderly parents who contribute Social Security income to household expenses or rely on you for financial support.
Roommates
Pure roommates -- people who share your living space but maintain separate finances -- generally do not count under the IRS or economic unit approaches. They may count under the Census approach, since they occupy the same housing unit. However, counting a roommate increases your household size (good for the median threshold) without adding their income to your CMI (since they are not a spouse).
Domestic Partners / Significant Others
Unmarried partners are not treated as spouses for means test purposes. Under the Census approach, they count if they live with you. Under the IRS approach, they count only if you claim them as dependents. Under the economic unit approach, they count if you share finances. Their income is not automatically included in your CMI the way a spouse's income is, but regular financial contributions from a partner may count as "income" under certain interpretations.
Non-Filing Spouse's Income and the Marital Adjustment
If you are married and filing individually (not a joint case), your non-filing spouse's income is included in your current monthly income under 11 U.S.C. Section 101(10A). This can push you above the median even if your own income is low.
However, the means test includes a critical safety valve: the marital adjustment on Form 122A-1 (Line 11). This deduction allows you to subtract the portion of your non-filing spouse's income that is not regularly used for household expenses of the debtor or the debtor's dependents.
How the Marital Adjustment Works
Suppose your spouse earns $5,000 per month. Of that, $3,000 goes toward shared household expenses (mortgage, groceries, utilities, children's costs). The remaining $2,000 goes toward your spouse's separate car payment, student loans, and personal expenses. You can claim a $2,000 per month marital adjustment, reducing the CMI by that amount.
The marital adjustment can be substantial. Document it carefully -- the U.S. Trustee may challenge it if the allocation between household and non-household expenses seems unreasonable.
Strategy: When Household Size Is Borderline
If you are near the means test threshold and household size could tip the result either way, the definition matters a great deal. Here are strategic considerations:
- Know your circuit's approach. Research the published decisions in your district. If the law is unsettled, you may be able to argue for the most favorable approach.
- Document financial interdependence. If you are supporting people who might not count under the IRS approach, document the financial relationship -- bank statements, receipts, proof of shared expenses. This supports the economic unit argument.
- Consider timing with custody. If you share custody of children, the household size may depend on where the children are primarily residing at the time of filing. Court orders, school enrollment, and actual living arrangements all matter.
- College students. If your child is away at college but you claim them as a dependent and they return home during breaks, most courts count them. Document the dependency.
- Anticipate the U.S. Trustee. If your household size claim is aggressive, the U.S. Trustee may challenge it. Be prepared with documentation: tax returns (for the IRS approach), lease agreements or utility bills (for the Census approach), and bank statements showing financial interdependence (for the economic unit approach).
Household Size on the Forms
You declare your household size on Form 122A-1, Line 5. The form asks for the number of people in your household. The form does not specify which definition to use -- it simply says "household." This is where the ambiguity begins.
The household size you enter on Form 122A-1 determines which column of the median income table applies to your case. The U.S. Trustee publishes current median income figures at justice.gov/ust, broken down by state and household size from 1 to 10+ persons.
See our Median Income Tables for current figures by state and household size.
Frequently Asked Questions
Who counts in my household for the means test?
It depends on which approach your court uses. Under the Census approach, everyone living in your home counts. Under the IRS approach, only you, your spouse, and your tax dependents count. Under the economic unit approach, people who are financially interdependent with you count. Your spouse and minor children count under all three approaches.
Does my non-filing spouse count?
Yes. Your spouse is part of your household under all three approaches. Their income is included in your CMI calculation, but you can claim a marital adjustment deduction for the portion of their income not used for household expenses.
Do my adult children count in household size?
It depends on the approach. Under the Census approach, yes, if they live with you. Under the IRS approach, only if you claim them as dependents. Under the economic unit approach, only if they share finances with you. Adult children with independent income and their own households generally do not count.
Does my spouse's income count on the means test?
Yes. Your spouse's income is included in your current monthly income even if you file individually. However, the marital adjustment on Form 122A-1 lets you deduct the portion of their income not used for your household expenses. This adjustment can significantly reduce the impact of a high-earning non-filing spouse.
Check Where You Stand
Enter your state, household size, and income to see whether you are above or below the median income threshold.
Not Legal Advice
This page provides general educational information about household size for the bankruptcy means test. It is not legal advice. Household size determinations can be complex and vary by jurisdiction. Consult a licensed bankruptcy attorney in your district to determine the correct household size for your case.