Question 1

How do I calculate the bankruptcy means test?

Accepted Answer

To calculate the means test, add up your gross household income from all sources for the 6 full calendar months before filing. Divide by 6 to get your monthly average. Multiply by 12 for annual income. Compare this to your state's median income for your household size. If below the median, you pass automatically.

Question 2

What income counts for the bankruptcy means test?

Accepted Answer

Almost all income counts for the means test, including wages, salary, bonuses, self-employment income, rental income, pension income, unemployment benefits, and regular contributions from others toward household expenses. Social Security benefits are explicitly excluded. The calculation uses your income from the 6 full calendar months before filing.

Question 3

What if I fail the means test?

Accepted Answer

If you fail the means test, you cannot file Chapter 7 but you can still file Chapter 13 bankruptcy, which has no income limit. You may also re-calculate using a different filing date, claim special circumstances, or adjust legitimate expenses. Failing the means test does not mean you cannot get bankruptcy relief.

Question 4

Does Social Security count for the means test?

Accepted Answer

No. Social Security benefits are explicitly excluded from the means test calculation under 11 U.S.C. Section 101(10A). This includes retirement benefits, disability (SSDI), and survivor benefits. If Social Security is your only income, you automatically qualify for Chapter 7 regardless of the amount.

Question 5

What is the median income for the means test by state?

Accepted Answer

Median income thresholds for the means test vary by state and household size. For a single filer, the 2024 median ranges from approximately $47,000 (Mississippi) to $79,000 (New Jersey). For a family of four, the range is approximately $76,000 (Mississippi) to $127,000 (New Jersey). Updated figures are published by the U.S. Trustee Program.

Question 6

How far back does the means test look at income?

Accepted Answer

The means test looks back 6 full calendar months before the month you file. If you file in April, the lookback covers October through March. This lookback period determines your 'current monthly income' and can be strategically timed to exclude months with unusually high or low income.

Common Questions